Operating at the cutting-edge of technology and finance, Derivative Path has become the partner of choice for firms in need of seamless support across derivatives and risk management. Unrivaled product solutions, peerless analytics and a dedication to evolving along with its clients’ needs made the firm a worthy winner of both Derivatives Technology Provider and Risk Management Advisory firm.
Derivative Path has grown rapidly, expanding from an initial focus on regional and community banks to additional segments including the sponsor and corporate space. “But we’ve also remained thoughtful and deliberate about which clients we want to serve,” says Zack Nagelberg, the firm’s Chief Growth Officer and co-founder. Unlike large legacy enterprise platforms that often prioritize breadth over specialization, Derivative Path’s unique platform — DerivativeEDGE — is purpose built for its customers.
A close partnership between the client coverage, product, and technology sections of the firm help ensure that Derivative Path utilizes the most sophisticated tools in a manner that best serves the end user. “We’re very focused on purpose building technology for our customers’ specific use cases,” says Brett Morrell, Head of Risk Solutions, noting that the advisory business often functions as an indicator of technological priorities. “When serving as a risk advisor, customers are coming to us with specific problems and that gives us great insight into the required functionality of our technology platform to solve those issues.”
Client challenges can require Derivative Path to mobilize a cross-functional team of experts across technology, risk management, and regulatory compliance. The firm recently helped a mid-sized regional bank grappling with sudden and significant exposure due to unexpected market volatility. Derivative Path provided a real-time view of the client’s exposure and customized its platform’s risk management tools to align with the bank’s risk tolerance and capabilities. On the advisory side, strategic recommendations for trade executions helped the bank hedge its exposure effectively.
Strong demand for a blend of advisory and technology services in the derivatives market requires a holistic approach to helping meet clients’ needs. This in turn requires optimal cooperation across the firm. “As well as a highly collaborative team culture, we don’t have major silos,” says Nagelberg. “We’re an inclusive organization where everyone’s input is valued.”
Kristin Kelly, Chief Product Officer, points to the interaction between the product and advisory teams to ensure that Derivative Path provides clients with the most efficient tools and the highest standard of service. When it comes to rolling out solutions to clients, low friction integration is a key priority. “We have seamlessly integrated with our clients’ internal systems, portfolio management and collateral management platforms,” says Kelly. A robust set of APIs allow customers to easily access and utilize hedging data in multiple different ways. “We ensure they can make the most efficient decisions around their hedging strategy and can really visualize its performance.”
“We cover a pretty robust set of markets and instruments from interest rate to FX, to commodities,” says Kelly. “And we’ll continue to grow out our support with a focus on efficiency, usability, and design so they can have seamless access to the data.”
Derivative Path is naturally heavily focused on the US. But its win as Global and Americas Derivatives Technology Provider of the Year reflects the platform’s ability to support clients with worldwide operations. The firm supports non-dollar rates, cross currency and FX products. Staff have decades of expertise managing financial market risks internationally. “That’s been a significant investment since we launched our sponsor and corporate coverage efforts and we’re really proud of how we’ve been able to expand and evolve our advisory and technology offerings in order to meet the needs of our global clients,” says Morrell.