Toomre Capital Markets LLC

Real-Time Capital Markets -- Analytics, Visualization, Event Processing, and Intelligence

QuIC Financial Technologies Continues Its Strong Performance

Toomre Capital Markets LLC ("TCM") is often asked to identify innovative financial concepts, technologies and firms that will enable financial firms, asset managers and their service providers to have "an edge". In the white paper The Future of Enterprise Risk Management written on behalf of a TCM client in 2005, several leading independent software vendors were mentioned. One of them was QuIC Financial Technologies, a leader in risk management and financial analytics software that is highly regarded for its combination of speed, flexibility, scalability and interoperability with in-house and partner systems.

In a January 27th 2006 press release announcing the appointment of Wolfgang Porada as the new head of QuIC's European sales, QuIC's President and CEO Nigel Cairns said, “QuIC has seen significant growth over the past two years. Our client list of top-tier banks has expanded, and repeat business has been strong. With Wolfgang’s leadership, we plan to build on this base of success as we increase our presence in Europe.” QuIC is still a private company so financial results are not readily available. However, this statement hints at the success QuIC Financial has had with major financial organizations in getting "QuIC’s vision of a shared calculation fabric, implemented throughout the organization." Congratulations on QuIC's continued growth!

Toomre Capital Markets has worked with the QuIC Product Suite and recommends this vectorized software highly. In mortgage-backed securities, the homeowner often has the right to prepay the outstanding loan balance causing the holder of the MBS to have principal redeemed early, often just as interest rates fall and the prices of fixed-income securities rise. As a result, option-adjusted spread modeling has been developed to calculate what the spread of the MBS would be to treasuries absent the homeowner option. This involves building a quantitative model that simulates interest rates over time and then calculates what portion of the outstanding pool balance likely would be pre-paid. Using a technique referred to as Monte Carlo simulation, the mortgage prepayment model is run many tens of thousands of times until the average value across all of the simulations converges. By programming the quantitative model with the QuIC Product Suite (instead of traditional C, C++ or even C# programming languages), results are returned significantly faster.

When the QuIC software is used with more complicated quantitative models (used to price derivatives like Bermuda swaptions and credit derivative tranches), the time savings are even more impressive. Using this software and other innovative techniques, leading financial institutions are moving yet closer to near real-time Enterprise Risk Management analytics. Please contact Toomre Capital Markets for more information on how we can help your organization with this QuIC software and other leading technologies. Comments and questions are welcome.