The world of derivatives solutions, traditionally dominated by big institutions using very advanced, proprietary systems and a few large suppliers of turnkey software packages, is becoming more crowded. The newest face is an old one: FinancialCAD Corp., a small private company based in Surrey, British Columbia. Formerly called Glassco Park Inc., it is moving into the "solutions" market next month, after building a respectable niche providing Windows-based financial engineering technology for the same marketplace, with a new product called FinancialCAD Server that will compete for turnkey customers.
The company's current niche is pretty comfortable. As Glassco Park, it served more than 1,800 financial services companies directly involved in the derivatives business. These customers-including Bank of America, Soros Fund Management, and Deutsche Bank-have used some or all of the company's "library" of 300 algorithms as the mathematical engine driving their derivatives operations. Credit Suisse is using FinancialCAD as part of its new international risk management system (see chart).