Technology

Accurately calculating the value of an FX barrier option transaction or generating the expected cash flows of an interest rate swap in a future period requires expertise in both financial modeling and capital markets. Variance Financial has a team of professionals with highly valuable and unique set of skills who have built a state of the art technology solution capable of doing this and more.

VARFIN is a cost-effective solution that puts together real-time market data, financial product databases, and an advanced calculation and reporting engine, to provide our clients with the information they demand about their financial product portfolios. This is our core technology infrastructure on which all our functional capabilities rely.

We have applied our extensive experience and know-how in pricing any kind of Interest Rate, Foreign Exchange, or Commodity product, from plain vanilla interest rate swaps to foreign exchange barrier options, to build VARFIN. We use proprietary methodologies to bootstrap interest rate forward curves and option implied volatility surfaces, that allow us to price sophisticated financial products based on different tenors of USD Libor, Euribor and Eonia rates, as well as interest rate indices from numerous other countries.

VARFIN allows us to run Risk Analysis, Scenario Analysis and Hedge Effectiveness Tests to help us come up with the best hedging strategies or restructuring possibilities.

Our clients can use our reports for both accounting and decision-making purposes. They can rely on VARFIN to track their debt and financial product portfolio, run valuations, reconcile bank payments, retrieve transaction information, and much more.

Through our work on tens of thousands of complex financial transactions and directly dealing with both banks and clients, we have built a technology solution that provides the independent, accurate, useful, fast and secure information that our clients demand.

Our Solution

VARFIN is a cost-effective solution that puts together real-time market data, a database of financial products, and an advanced calculation and reporting engine, with the objective of meeting our clientÔÇÖs needs for:

  • Reporting
  • Risk and Scenario Analysis
  • What-If Analysis
  • Portfolio Hedging
  • Hedge Effectiveness Test
  • Independent Valuation and Pricing
  • Cash Flow Projections
  • Bank Reconciliations
  • Audit of Portfolio Positions
  • Market Risks
  • Secure and Reliable Platform

VARFIN has a convenient, easy-to-use graphical interface used for booking trades and capable of generating over a dozen reports for Interest Rate, Foreign Exchange and Commodity portfolios.

Our solution supports a variety of reporting options:

  • Current and historical valuation request.
  • Reports generated in Excel, PDF, CSV, or RTF.
  • Grouping, sorting and filtering Conditions.
  • Scenario analysis.
  • Multiple account tracking.

Instruments

The following is a short list of instruments covered by VARFIN:

  • Debt (Fixed and Floating)
  • Vanilla Swaps
  • Constant Maturity Swaps (CMS)
  • Cross Currency Swaps
  • Caps / Floors
  • Collars
  • Knock-In / Knock-Out Caps / Floors
  • Swaptions
  • Spot
  • Forwards
  • Calls / Puts
  • Barrier Calls / Puts

Currencies and Indexes

The current currencies and indices covered are:

  • EUR – Euribor; Eonia.
  • USD – Libor; Fed Funds.
  • GBP – Libor; Sonia.
  • CHF – Libor.
  • AUD – Libor.

VARFIN is capable of supporting more instruments, currencies and indices on demand.

For more information, please contact us.