Triple Point Technology Introduces FRONT-OFFICE Booster, Commodity Trading Decision-Support Tools.WESTPORT, Conn.--(BUSINESS WIRE)--Oct. 9, 1998-- Facilitates Market Making and Derivative Trading Activities Triple Point Technology, Inc. (Triple Point) today introduced FRONT-OFFICE Booster(tm), a collection of decision support tools for pricing and analyzing complex commodity derivative instruments Derivative instruments Contracts such as options and futures whose price is derived from the price of an underlying financial asset. and portfolios. The tools, designed for traders, risk managers, market makers, and derivative sales people, may provide trading organizations with an advantage within the highly competitive, and increasingly sophisticated, global commodity trading marketplace. The product also facilitates market making operations and client risk management services. FRONT-OFFICE Booster is an add-on module to TEMPEST 2000, Triple Point's comprehensive front-to-back office trading business system for global derivative and physical oil markets. Using FRONT-OFFICE Booster, traders can manage forward curves, perform pre-deal pricing calculations, and analyze portfolio sensitivity by processing "what if" scenarios for changes in interest rates, spot and forward prices, volatilities, and other variables. The new product was co-developed with PFS PFS, n post facilitation stretch; therapeutic approach utilized during proprioceptive neuromuscular facilitation in which the patient begins the stretch midway between the fully relaxed and fully stretched position and uses maximum level of effort to TraderTools+, the leading provider of sophisticated, object-oriented trading room The notion of "trading room" (sometimes used as a synonym of "trading floor", see below) is widely used in financial markets to refer to the office space where market activities are concentrated in investment banks or brokerage houses. productivity software to the financial community. Hess Energy Trading Company (HETCO), a current TEMPEST 2000 user, is the first company to license FRONT-OFFICE Booster. "With FRONT-OFFICE Booster, we continue to realize our strategy of extending support up and down the trading organization," said Peter F. Armstrong, Triple Point principal and director of business development. "Whereas TEMPEST 2000 and our other products focus on the accounting and management of transactions, FRONT-OFFICE Booster provides the tools that traders and market makers need to make trading decisions." "FRONT-OFFICE Booster allows traders to instantly price complex derivative instruments and measure the sensitivity of heterogeneous portfolios," said Karan Renjen, Triple Point trading tools product manager. "The increasing complexity and volume of derivative trades being executed in the global commodity marketplace highlights the need for such a system." "We have always known that we wanted to be a full-service, international energy trading company," said Stephen M. Semlitz, HETCO managing director. "FRONT-OFFICE Booster is a strategic product for us in that it enables us to realize our initial strategy of developing proprietary trading Proprietary Trading When a firm trades for direct gain instead of commission dollars. Essentially, the firm has decided to profit from the market rather than commissions from processing trades. , followed by a market making operation. The new software will allow us to develop pricing structures for our customers as well as evaluate pricing structures presented to us from the market." Features and Functionality FRONT-OFFICE Booster is a collection of trading tools designed to be used both prior to and after execution of derivative trades. Pre-execution tools include deal calculators, hedge calculators, and pay-out graphs for all derivative instruments. Post-execution tools provide powerful scenario-based sensitivity and "what-if" analysis for user-defined TEMPEST portfolios. Curve management features enable users to: -- Define and manage forward price curves, volatility "smile" curves and correlation matrices; -- Create curves based on settlement values, current tick values or other user-defined curves; -- Automatically shift and skew curves by adjusting algebraic 1. (language) ALGEBRAIC - An early system on MIT's Whirlwind. [CACM 2(5):16 (May 1959)]. 2. (theory) algebraic - In domain theory, a complete partial order is algebraic if every element is the least upper bound of some chain of compact elements. coefficients; -- Manipulate individual points on the curve and allow the system to apply "line-fitting" algorithms; and -- Publish curves so others on the desk can use for pricing or post to TEMPEST for official P/L P/L Pipeline P/L Profit and Loss P/L Product Liability P/L Payload P/L Property Line P/L Packet Loss P/L Pulsed Laser P/L Packing List (shipping) P/L Personal Lines P/L Proprietary Limited Company reporting. FRONT-OFFICE Booster's deal pricing features include: -- American, European and average price option calculators; -- Swap, swaption Swaption Options on interest rate swaps. The buyer of a swaption has the right to enter into an interest rate swap agreement by some specified date in the future. The swaption agreement will specify whether the buyer of the swaption will be a fixed-rate receiver or a fixed-rate and spread option calculators; -- Automatic computation of metrics for a series of options by varying expiration, strike, forward price and volatility over a defined range; -- Hedge calculators for all derivative instruments; and -- Calculations based on settlement data, current tick data or user-defined curves. Sensitivity analysis functionality in FRONT-OFFICE Booster enables traders to: -- Compute and report impact to position and P/L due to changes in price, volatility or time to maturity; -- Create and save user-defined scenarios of price shifts, volatility shifts and time shifts for repeated analysis; -- Define ad-hoc scenario "what if" analysis; -- For all scenarios, display position, change in position, delta, gamma, theta Theta A measure of the rate of decline in the value of an option due to the passage of time. Theta can also be referred to as the time decay on the value of an option. If everything is held constant, then the option will lose value as time moves closer to the maturity of the option. , and vega; and -- Apply scenario testing Scenario testing is a software testing activity that uses scenario tests, or simply scenarios, which are based on a hypothetical story to help a person think through a complex problem or system. to any user-defined portfolio of trades in TEMPEST. Product Configuration Client: Microsoft Windows See Windows. (operating system) Microsoft Windows - Microsoft's proprietary window system and user interface software released in 1985 to run on top of MS-DOS. Widely criticised for being too slow (hence "Windoze", "Microsloth Windows") on the machines available then. 95/NT 4.0 operating system operating system (OS) Software that controls the operation of a computer, directs the input and output of data, keeps track of files, and controls the processing of computer programs. . Third-Party Interfaces: Microsoft Office Microsoft's primary desktop applications for Windows and Mac. Depending on the package, it includes some combination of Word, Excel, PowerPoint, Access and Outlook along with various Internet and other utilities. 95 and Office 97, Financial Engineering Associates option pricing models option pricing model A mathematical formula for determining the price at which an option should trade. The model expresses the value of an option as a function of the value of the underlying asset, length of time until maturity, exercise price, yields on , and PFS TraderTools+ option pricing models. FRONT-OFFICE Booster is currently available. Triple Point Technology Triple Point Technology, Inc. (www.tpt.com) provides comprehensive, integrated commodities trading solutions to major oil companies, investment banks The following is a list of investment banks Financial conglomerates Large financial-services conglomerates combine commercial banking and investment banking, and sometimes insurance. , shipping concerns, energy companies, and other global trading organizations. The company leverages technical, business, and trading expertise to help customers reengineer their business processes and develop efficient commodities trading systems. Founded in 1993, Triple Point is headquartered in Westport, Connecticut (USA) and operates satellite offices in New York City New York City: see New York, city. New York City City (pop., 2000: 8,008,278), southeastern New York, at the mouth of the Hudson River. The largest city in the U.S. , Houston, Texas (USA), and Singapore. Its clients include such leading worldwide trading organizations as Koch Industries, Morgan Stanley & Co., Galaxy Energy International, Societe Generale Energie, Hess Energy Trading Company (HETCO), MIECO Inc., Petronas, Glencore, and Williams. All trademarks are the property of their respective owners. |
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