CDFS provides consulting and advisory services to identify, manage and control financial risk arising from foreign exchange, interest rate and commodities fluctuations. CDFS also offers calculation services related with financial and risk management areas on its web site. The first piece of such services is a data and estimation service using CDFT developed DATA+ 3.0 system. On the web site customers can access the DATA+ server and obtain time series of market variables on desired frequencies, statistical estimates such as volatilities and correlations, betas, kappas and gammas, and their histories. The service offers the user possibilities to implement e.g. his own tailored RiskMetrics dataset estimations, and multiple other estimation profiles, with links from Reuters, Bloomberg, and from other on-line information services
CDFS offers sophisticated cutting-edge solutions for large and medium size corporations, asset management entities and financial institutions in financial risk management.
CDFS aims to add value by providing the latest theoretical and practical expertise on risk management and performance measurement tailor-made for the client’s benefit.
CDFS´s main areas of expertise are:
- Risk Management Consulting
- Dynamic Hedge Management Calculation Services
- Risk Analysis and Data Estimation Calculation Services
Risk Management Consulting
CDFS has a proven expertise in the area of risk management and related consulting which it is happy to pass on for the benefit of its clients.
CDFS risk management consulting service offers strong theoretical know-how combined with professional market expertise. The risk analysis models used by CDFS are in-house developed within CD Group.
CDFS aims to challenge the conventional wisdom in search for the best solution, but assures that the results are presented in a clear and understandable format.
Dynamic Hedge Management Calculation Services
CD Financial Services has developed Dynamic Hedging techniques for interest rate, foreign exchange and commodity market risk exposure hedging. Dynamic Hedging is an alternative or an addition to the conventional hedging instruments such as forwards, futures or options. The key advantages are:
- cost efficiency
- flexibility and liquidity
- portfolio diversification
CD Financial Services has successfully helped several clients in managing their positions since 1993 allowing significant cost savings to the client. CD Financial Services can provide the client with an access to the Dynamic Hedging software, and educate and train the client to manage the Dynamic Hedge himself.
CD Financial Services is currently developing an advanced VAR-based portfolio hedging method. It is capable of managing portfolio risk more effectively and profitably than before by constructing a mini-basket that accurately tracks the total risk exposure.
Risk Analysis and Data Estimation Calculation Services
CDFS offers calculation and data services related with financial and risk management areas on its web site. The services are provided on different servers, which interact internally with each other, where needed.
The first server opened is the MarketData server, based on the DATA+ 3.0 software system developed by CD Financial Technology. Through this server, the user can access customer specific and fully customized time series downloaded and updated at any frequencies from real time information services, such as Reuters and Bloomberg. The time series can also be complex mathematical transformations of the market data, such as option prices, ARIMA models, etc.
Using the MarketData server, a client can
- estimate volatilities, correlations, betas, kappas, gammas and other statistical estimates
- use such estimates as inputs in his simulation-based risk engines
- export the estimates and/or the basic data into other applications for further statistical analysis and study
Later on, other servers to be opened include the MarketRisk server, which allows the user to access the powerful market risk engine VAR+ developed by CD Financial Technology. |
