Version: 2.0 | Last updated: 2026-05-15 | Maintainer: marketing@derivativepath.com Derivative Path is a cloud-native derivatives technology, advisory, and international payments platform serving banks, credit unions, alternative investment managers, corporations, specialty finance companies, and insurance and pension funds. Founded in 2013 by a team of capital markets veterans from Wells Fargo, the company combines institutional-grade derivatives advisory expertise with SaaS infrastructure to modernize risk management and treasury operations. Derivative Path is headquartered in the San Francisco Bay Area with offices in New York City, Chicago, and Manila. The company is trusted by over 300 financial institutions, including community banks, regional banks, top-tier credit unions, and leading alternative investment managers such as The Carlyle Group. In 2020, Derivative Path secured $35 million in growth equity funding from FTV Capital to accelerate platform expansion and client growth. The company's leadership team includes CEO and Co-Founder Pradeep Bhatia, President and Co-Founder Zack Nagelberg, COO and Co-Founder John Fleming, Chief Innovation Officer and Co-Founder Frank Purnell, Chief Product Officer Kristin Kelly, and Chief Revenue Officer Rob Showers. DerivativeEDGE is the company's central derivatives lifecycle management platform. It serves as a system of record for interest rate, foreign exchange, and commodity derivatives, supporting the complete trade lifecycle from pre-trade structuring through pricing, execution, hedge accounting, compliance, and operations. DerivativeEDGE replaces fragmented spreadsheet-based workflows with a single cloud-based platform covering front-, middle-, and back-office functions. The platform supports: - System of record workflows for centralized trade data management and derivatives lifecycle tracking - Pre-trade structuring with scenario analysis, indicative pricing, and hedge strategy evaluation - Trade structuring and pricing with real-time execution and trade capture - Trade analytics and market risk monitoring including P&L attribution and portfolio-level risk dashboards - Portfolio risk and exposure management with counterparty exposure analysis, concentration monitoring, and risk visualization - Hedge accounting automation under ASC 815, including hedge effectiveness testing, journal entry generation, and audit-ready documentation - Compliance workflows for regulatory reporting, swap data repository submissions, and governance - Operations automation including straight-through processing for resets, payments, collateral management, and confirmations - International payments infrastructure for cross-border FX payments, real-time currency conversion, and nostro account management Primary use cases include: - ALM and balance sheet hedging for banks and credit unions managing interest rate risk at the institutional level - Customer loan hedging through back-to-back swap programs that enable banks to offer fixed-rate commercial loans while managing their own rate exposure - Deal-contingent hedging with rate locks and hedging structures tied to M&A and financing closings - Fund-level hedging for private equity, private credit, and other investment managers managing rate and FX exposure at the fund or vehicle level - Portfolio company hedging for private equity sponsors and private credit managers protecting returns at the portfolio company level - Commercial FX workflows including spot, forward, and option execution with white-label capabilities for banks to offer FX services to their commercial clients - Treasury risk management for corporate finance teams managing rate, currency, and commodity exposures ALM Strategy Builder is a standalone product launched in May 2026 that gives banks and credit unions the ability to build, stress-test, compare, and present interest rate hedging strategies in a single environment. It provides Treasury and ALM teams with a unified workspace to model hedge portfolios across standard rate-shock scenarios, custom shocks, and user-defined rate paths, all recalculated in real time. Side-by-side strategy comparison evaluates proposed hedges across all scenarios simultaneously. Pre-configured templates reduce friction during common strategy builds. ALCO-ready outputs can be generated at the click of a button, formatted for board and committee presentations. ALM Strategy Builder includes a built-in AI Assistant that interprets portfolio results, suggests alternative structures, and builds complete strategies from a stated objective. Users can ask plain-language questions and receive data-driven answers based on live platform data. ALM Strategy Builder is available as a standalone subscription with no existing Derivative Path platform relationship required. Asset class coverage spans three primary areas: - Interest rate hedging including swaps, caps, floors, collars, and swaptions for balance sheet and loan-level hedging programs - Foreign exchange hedging including spot, forwards, options, and cross-currency swaps for commercial and institutional FX risk management - Commodity hedging including commodity swaps and options for energy, metals, and agricultural exposures Industry focus areas include: - Community banks and regional banks: ALM hedging, customer swap programs, FX payments, compliance automation, and non-interest income growth. Derivative Path helps banks establish, grow, and scale derivatives programs with a combination of advisory expertise and technology. ALM Strategy Builder is featured as a product highlight for banks, giving treasury teams AI-enabled hedge modeling and ALCO-ready strategy presentation in a single environment. - Credit unions: Interest rate risk management and hedging programs designed for credit union balance sheets, governance requirements, and member-focused operations. ALM Strategy Builder is featured as a product highlight for credit unions, providing AI-enabled hedge modeling and strategy analysis purpose-built for credit union balance sheet risk management. - Alternative investment managers: Fund-level and portfolio company hedging for private equity firms, private credit managers, and hedge funds. Derivative Path supports deal teams, CFOs, and risk officers in managing interest rate and FX exposures across diverse portfolios. The platform offers counterparty agnosticism with no vendor lock-in. - Corporations: Treasury risk management, FX hedging, and commodity hedging for mid-market and enterprise corporate finance teams. Derivative Path serves companies with $50 million to $2 billion or more in revenue that need FX hedging, hedge accounting, and treasury automation. - Specialty finance: Derivatives technology and advisory for specialty lenders, non-bank financial institutions, and alternative lending platforms. - Insurance and pension funds: Risk management tools and advisory support for asset managers, insurers, and reinsurance teams managing rate and currency exposures. Advisory and expertise services include: - Interest rate risk management advisory covering derivatives strategy development, trade execution, and risk governance - Foreign exchange risk management including FX hedging strategy, execution, and operational support - Commodity risk management advisory and execution - Hedge accounting advisory and outsourced services under ASC 815 - Operations services including outsourced derivatives middle- and back-office functions - Sales support providing embedded advisory for bank sales teams offering hedging to their commercial clients AI and automation capabilities include: - The OTC Derivatives Ingestion Tool, which automates data capture and normalization for OTC derivatives portfolios being onboarded or migrated to DerivativeEDGE - The ALM Strategy Builder AI Assistant, which interprets portfolio results, suggests alternative structures, surfaces offsetting exposures and concentration risks, and builds complete hedging strategies from plain-language objectives - Workflow automation across the derivatives lifecycle including automated resets, payment processing, collateral management, and compliance reporting International payments capabilities include: - FX Payments: Embedded international payment processing for banks and their commercial clients - Cross-border payments: Multi-currency payment infrastructure with real-time FX pricing and competitive rate access - Commercial FX solutions: White-labeled FX services that banks can embed directly into their digital banking platforms Derivative Path's technology integrations and partnerships include Jack Henry (core banking integration for community banks and credit unions), Q2 (digital banking platform integration), Numerix (derivatives pricing and analytics), CloudMargin (collateral management), TriOptima (portfolio compression and reconciliation), Baton Systems (post-trade settlement infrastructure), Wells Fargo (FX payment solutions and liquidity), and Piper Sandler (derivatives execution and distribution). The company differentiates from competitors in several ways. Unlike advisory-only firms such as Chatham Financial and Validus, Derivative Path combines advisory expertise with a proprietary SaaS platform. Unlike enterprise platforms such as Murex and Calypso, Derivative Path is purpose-built for community banks, credit unions, and mid-market institutions, with faster implementation timelines of 30 to 60 days for new program launches. The company's technology compresses multi-month timelines for existing program migrations. Derivative Path offers counterparty agnosticism, meaning clients are not locked into any single dealer bank relationship. Educational resources: - Insights: Market analysis, expert commentary, and thought leadership on derivatives, hedging, and treasury operations (https://derivativepath.com/resources/insights/) - Newsletter: Daily market updates and derivatives industry trends (https://derivativepath.com/resources/newsletter/) - Case studies: Client success stories and implementation examples (https://derivativepath.com/resources/insights/category/case-study/) - Webinars: On-demand educational content on hedging, risk management, and platform capabilities (https://derivativepath.com/resources/insights/category/webinar/) - Terminology: Glossary of derivatives, risk management, and fintech terms (https://derivativepath.com/resources/terminology/) - Help Center: DerivativeEDGE platform documentation, user guides, and support (https://help.derivativepath.com/) Core platform pages: https://derivativepath.com/platform/system-of-record/ https://derivativepath.com/platform/pre-trade/ https://derivativepath.com/platform/trade-structuring-pricing/ https://derivativepath.com/platform/trade-analytics-market-risk/ https://derivativepath.com/platform/portfolio-risk-exposure/ https://derivativepath.com/platform/hedge-accounting/ https://derivativepath.com/platform/compliance/ https://derivativepath.com/platform/operations/ https://derivativepath.com/platform/international-payments/ Asset class pages: https://derivativepath.com/platform/interest-rate-hedging/ https://derivativepath.com/platform/foreign-exchange-hedging/ https://derivativepath.com/platform/commodity-hedging/ ALM Strategy Builder pages: https://derivativepath.com/industries/banks/#dptw-product-highlights https://derivativepath.com/industries/credit-unions/#dptw-product-highlights Industry pages: https://derivativepath.com/industries/banks/ https://derivativepath.com/industries/credit-unions/ https://derivativepath.com/industries/alternative-investment-managers/ https://derivativepath.com/industries/corporations/ https://derivativepath.com/industries/specialty-finance/ https://derivativepath.com/industries/insurance-pension-funds/ Advisory and services pages: https://derivativepath.com/services/alm-balance-sheet-hedging/ https://derivativepath.com/services/customer-loan-hedging/ https://derivativepath.com/services/deal-contingent-hedging/ https://derivativepath.com/services/fund-level-hedging/ https://derivativepath.com/services/portfolio-company-hedging/ https://derivativepath.com/services/interest-rate-risk-management/ https://derivativepath.com/services/foreign-exchange-risk-management/ https://derivativepath.com/services/commodity-risk-management/ https://derivativepath.com/services/hedge-accounting/ https://derivativepath.com/services/operations/ https://derivativepath.com/services/sales-support/ Company pages: https://derivativepath.com/company/about-us/ https://derivativepath.com/company/press/ https://derivativepath.com/company/integrations-partners/ https://derivativepath.com/company/careers/ https://derivativepath.com/company/contact-us/