Ivan Maksymyk, Chief Analyst of FinlogiK

Interview with Mr. Ivan Maksymyk, Chief Analyst of FinlogiK.

The Newsletter:  Mr. Maksymyk, thank you. Tell us more about your company.

I. Maksymyk: FinlogiK is a Montreal-based, specialized software and technology solutions provider. The company was founded in 1998 and has grown in our city since that time, including going through the 2008 financial crisis. We have developed our flagship software solution, also called FinlogiK, which is an integrated trade and portfolio management system.  We offer our clients integrated, flexible solutions. 

Our clients typically are institutions such as banks, pension plans, and hedge funds, as well as corporate treasury departments of large corporations.  Our clients are typically large firms with important swap books (containing multiple currency exposures), and/or with significant bond issuances.  These organizations need to effectively and precisely value swap positions and manage their net values in order to stabilize their exposures and cash flows.

An example of the really brilliant features of FinlogiK is its ability to value swaps in the OIS discounting paradigm. We have devoted significant resources to OIS valuation and other sophisticated valuation methodologies, and here’s why.  OIS valuation is important today because of the growing importance of collateralized exchanges (New York and London require this already). There is a major trend towards standardizing and collateralizing trades between counterparties. OIS valuation of swaps involves unraveling the convolution of OIS curves and implied forward curves.  We must perform this complex computation to the highest standard of the industry.

But FinlogiK is not only a great tool for valuation and middle-office work. It also serves as a powerful back-office tool. For instance, FinlogiK also has the ability to write directly to general ledgers and to electronic fund transfer systems.  These features allow corporate treasuries to run a significant part of their operations on one integrated system.  Moreover, the consolidation and integration provided by our system permit the generation of on-demand risk reports.

The Newsletter:  This seems really unique and leading-edge!  In what space does FinLogiK operate?