STRUCTURED PRODUCTS TESTING
Structured Products Quantitative testing is considered a good practice for both Structured Retail Products Manufactures and Distributors. According to recent regulators indications, these tests should be made independently meaning for Manufacturers not to be conducted by the trading or hedging units and for Distributors to critically examine Manufactures data and scenarios. Furthermore, having an independent test makes the results unbiased and more credible in dealing with requests of competent authorities. With Fairmat Cloud you can generate quantitative independent reports (even white-labelled) for any structured product available in our public database or mapped by yourself (in your private area) starting from our Templates.
Our Quantitative reports contains:
- Short product description automatically generated by term sheet information (localizable).
- Fair Price - Issue Price spread as an estimate of product's costs.
- Expected return and volatility based on forward market information.
- Probability of underlying asset downside risk and related conditioned outcome.
- Implied market probability of issuer default.
- Tail risk of the products and related conditioned outcome.
- Probabilities (and related outcomes) to perform better, equal or less than a domestic bond.
- Robust backtesting.
- Easy: just one click to get several consistent quantitative analyses.
- Affordable: just 20 Fairmat Credits for product test.
- Compliant to regulations: the analyses included in our report are inspired by some recent policy actions like IOSCO 2013 toolkit for the Regulation of Retail Structured Products, ESMA opinion of February 2014 and March 2014, FSA guidelines of March 2012 and FCA Thematic Review of Product Development and Governance of March 2015.
- Customization and integration possibilities: contact us if you have special needs.