On November 19th 2015 in London, Modelity was awarded the prize for Technology Vendor of the Year.
Modelity was given this award for assisting the Swedish Structured Products association (SPIS), in standardising market and credit risk calculations among its members. PRIIPs, which comes into force in January 2017, will require standardised ratings for structured products, but issuers remain at odds over how the risks of the investments they sell to retail clients should be disclosed.
The association needed a partner to help implement its methodology whilst educating its members on the new indicators and providing an outsourcing option and validation service for their calculations. Modelity Technologies fit the bill on all counts. The company had been specializing in technological support services for the manufacture, marketing and operation of structured products for more than 10 years.
“Modelity is professional and solution driven, and they understand the needs and challenges of the structured products market. Not only do they have technical competence, they also fully understand the existing and emerging regulatory requirements, such as PRIIPs, and how the market must adapt to be compliant,” says Stefan Sonnerstedt, chief administrator at SPIS until September this year.
“We realised that different countries might have different views on how risk indicators should be calculated, so we built our methodology in a flexible way where users can input their own ideas and build their own risk indicator modelling into it,” says Eran Elad, vice-president of structured products’ sales at Modelity in Tel Aviv.
Modelity also responded swiftly to the thematic review of structured products development and governance published by the UK Financial Conduct Authority (FCA) in March 2015, which identified weaknesses in the way some firms approach structured products. “Modelity extensively researched the review and the FCA’s 2012 guidance on product development and governance and, using its field experience and technological capabilities, designed an independently run solution that can be used by product providers to comply with the guidance,” says Elad.
For a full list of 2015 Structured Products Europe award winners click here.
Otherwise, to view a PDF of the award article, click here.