A New Era in OTC Derivative Management

A team of sales, trading, risk management and technology experts formerly with Wells Fargo, have launched Derivative Path, Inc. a financial services company that is approaching the over-the-counter derivative markets with a fresh, technology-driven services offering. Derivative Path will provide a technology-led solution to assist financial institutions and commercial end users in executing and managing their over-the-counter interest rate derivative transactions.

The sales and trading team has led derivative sales and execution efforts for several major banks, has worked with respective capital markets and lending teams and with numerous financial institutions in creating derivatives back-to-back hedging programs.

“In an increasingly complex regulatory environment, financial institutions and their commercial end users are finding it more cumbersome to execute straightforward, risk-mitigating interest rate swaps and other derivatives,” says Steve Hawk, co-founder and co-CEO at Derivative Path. “We are making available a cost-effective, outsourced solution to help these institutions continue offering such products and remain compliant with the increased regulatory demands placed on the industry.”

“We are fully committed to applying our collective experience in running successful derivative businesses and accessing other industry experts and resources as needed, to ensure our clients achieve their desired financial risk management program goals.” says Pradeep Bhatia, co-founder and co-CEO.

Derivative Path will offer a full suite of services in hedge structuring, trade execution, required Dodd-Frank regulatory reporting and record retention, as well as risk management, operational, legal and accounting support. The team will also offer assistance to clients in setting up hedging, credit and other related bank policies, as well as with banker training.

“Over the coming months, the company plans to launch a secure, technology platform capable of assisting its financial institution clients in tracking the client-hedging process from proposal to execution to ongoing trade lifecycle servicing. “Our technology team has years of experience building and running large scale derivatives trading systems. We are using this expertise to create a client-accessible, state of the art technology platform which will greatly enhance our clients’ derivative workflow experience” says John Fleming, Derivative Path’s Chief Technology Officer.