FinMechanics: Comprehensive Solutions for Treasury and Capital Markets

Anindya Sarkar, CEO, FinMechanicsAnindya Sarkar, CEO
FinMechanics, a financial markets consulting company started in 2007 by Anindya Sarkar and three co-founders, was faced with both new opportunities and unique challenges in the wake of the global financial crisis. The credit crunch in 2008 made the financial markets extremely volatile. A young company found itself tackling very different issues and challenges from the ones it had set out to solve. They were repeatedly faced with gaps in solutions and leading capital markets technologies not keeping pace with the rapid changes around them.

Increasingly, clients asked FinMechanics to develop tools tailored to the changing business needs instead of making the existing ones work with sticky tape. What started as tools to aid risk, front office and sales teams evolved into enterprise software for global markets of banks. “We want to deliver a complete range of solutions and services to be the partner of choice for treasury, capital markets and risk departments of banks,” says Anindya Sarkar, CEO, FinMechanics.

Headquartered in Singapore with offices in Kuala Lumpur and Mumbai, the organization is split into two business lines Consulting and Products.

The Consulting Practice of FinMechanics enables clients to derive business benefits in the form of enhanced profitability, reduced costs and time to market, regulatory compliance and decision making tools. The consulting team works on derivatives pricing, collateral management, credit/funding adjustments and model validation. They also solve problems faced in transfer pricing, market risk, counterparty credit risk and P&L reconciliation across front office, risk and finance. The team works with operations and middle office to implement systems and processes to increase STP rates and automate settlements and trade clearing.

The Product suite of FinMechanics has three platforms FM Converge, FM Connect and FM Physicals.

Technology led innovation in financial markets provides a bigger competitive advantage than ever before

FM Converge offers a highly responsive platform to price, structure, and manage risk. Born out of the financial crisis, the platform incorporates funding, collateral and credit costs on a pretrade basis. Anindya points out that FM Converge seamlessly integrates with the existing trade repositories and back office systems of banks, resulting in a very high return on marginal investment. FM Converge is in use at mid-size banks along with large multi-locational trading desks. The platform allows replacement of its native pricing library with a bank’s own library or a popular third party library such as Numerix, OpenGamma, etc.

FM Connect is a cross-asset Single Dealer Platform (SDP) effectively taking the bank’s sales team to their customers’ desktop and handheld devices. It enables the bank’s customers to view and transact on streaming tradable quotes and negotiate prices for vanilla and exotic financial instruments. The client layer workflows along with look and feel can be fully tailored to meet each bank’s requirement. The platform brings the best in e-commerce technologies to the corporate clients of banks.

FM Physicals is an integrated front to back platform for commodities. The platform helps improve efficiency in physical trading of precious metals, base metals and wholesale banknotes business and can be adapted to other commodities. The platform handles all kinds of trade variations and their hedges with pre-deal inventory and limit checking, spreading rules, deal life-cycle and accounting.

FinMechanics plans to enrich the platforms, especially in the area of regulatory changes related to FRTB and Basel IV. “We believe technology led innovation in financial markets provides a bigger competitive advantage than ever before,” says Anindya. FinMechanics’ key differentiation lies in its specialized techno-functional team updated with the latest in quantitative finance, depth across financial markets and the ability to adopt latest technologies. In the near future, FinMechanics plans to expand its geographical footprint to London, New York, and Sydney.