We are a niche technical consultancy with offices in Singapore and in London through our partner firm InteDelta.
Our aim is the following
1. To provide technical expertise to Regional, Local & Central Banks and asset management institutions in developing new products, services and business lines in financial markets and derivatives. Examples of such can be front office businesses in FICC trading for example or even service based business such as prime or custody services or structured finance products such as securitisation. We are also
Our scope covers not only designing the product and feasibility of building the solution and support model along with potential pricing and revenue models and client segment targeting and strategy. We will also help in designing end to end workflows from a front, middle back perspective along with design the necessary risk governance framework for market and credit risk.
2. We have expert level knowledge of both global and regional/local regulatory developments. We help our clients undertake various regulatory implementation projects. Examples of these would be preparing banks in the region for BCBS-IOSCO margining reforms for uncleared trades, FRTB or even undertaking an impact analysis of Basel 3 charges (RWA credit, market), Leverage Ratio, LCR on front office business lines across FICC, Prime, Equity, FX and Custody divisions
3. We have 25 years working knowledge on both banking and asset management in house and vendor technology. We typically bridge the gap between technical requirements of trading, portfolio management and risk and uses a tried structured methodology in ensuring that our clients adopt the best fit of technology for their needs from a functional, architectural, costing and services perspective. We can either work with the client to build in house solutions or provide full vendor management and selection services to Banks, central banks and buyside with a structured RFP and tried and tested independent vendor selection process.
We have also undertaken projects of technology strategy and transformation. This includes moving banks to adopting a more nimble technology model. Examples are Enterprise to Cloud transformation along with looking to transform single integrated platforms into micro services using agile methodologies.
4. We are at the forefront of fintech developments with in house specialists in Cloud Technology and Blockchain solutions. We help banks with proof of concepts, on chain development of asset backed tokens and workflows using smart contracts. Examples of this are proof of concepts for post trade aimed at reducing time and cost for affirmation/confirmation, reconciliation, margining and settlement/custody.
Post the financial crises of 2008, financial markets in Asia are faced with a more complex and regulated global landscape where the cost of trading, post trading & custody requirements are significantly higher. Markets today are undergoing tremendous change to ensure they offer a balanced framework of risk and efficiency. At the same time, banks are under pressure from regulations, disruptive technology & balance sheet constraints and as such are forced to adopt leaner less capital intensive models while investing in advanced risk management policies and framework while still ensuring that the meet the expected return on equity.
What we do for Banks?
In this environment, Deriv Asia adds value to clients across the region by helping them to re-define their business model and ensure it in line with global trends, regulatory requirements, best practices and have the appropriate tools to capture risk, capital and the overall regulatory impact and costs to the balance sheet. We also provide expertise on re-engineering the front, back office & risk infrastructure and align the firm to industry best practices, regulatory compatibility, cost effectiveness and selecting the right technology from both a functional and non functional and services perspective.
For Asset Management firms
We have knowledge of investment management, investment risk, performance attribution models and asset management technology. Today’s asset management environment in Asia is challenging not only due to the uncertain global macro environment but also due to regional factors such as the inability of pension funds to match longer term liabilities with suitable long dated local instruments which particularly impacts life insurance and pension funds. Moreover the inability to do pre deal VAR based risk analysis on one’s portfolio or other complex scenario analysis is limiting the effectiveness of investment strategies. What Deriv Asia brings is a strong knowledge of investment management and best practices of global asset managers coupled with have strong knowledge of vendor technology and banking architecture and are regularly called up for vendor selection, due diligence and gap analysis of vendors.
Concurrently we are plugged in to fin tech developments and are regularly advising start ups such as P2P, crowd funding platforms as well as cloud based providers on how their technology can fit into today’s financial market models.
Deriv Asia is a partner company of InteDelta from the UK for approximately 90% of its consulting engagements are carried out by combining the expertise of both firms. By combining the tried and tested expertise of InteDelta working with Global Banks in sophisticated projects from London and combining it with Deriv Asia’s deep knowledge of Asian markets, we have successfully developed a streamlined support model for helping our clients in Asia.
Our subsidiary is called OnChain Asia. OnChain Asia’s main objective is to focus on fintech solutions such as Enterprise to Cloud transformation and also developing solutions onchain for digitalised tokens, workflows with smart contracts and integration of enterprise to chain solutions.