Trading strategies using convertible bonds, credit derivatives and equity-linked securities have been growing in popularity amongst buy-side and sell-side firms over the last two years. The primary drivers behind this trend have been high returns and an active primary market for equity-linked securities. SunGard Trading and Risk Systems provides complete straight-through processing support for these and a broad range of other asset classes. Monis complements these services by providing analytics and decision support for these asset classes, enabling users to hedge, price and manage their cross-asset class portfolios in an integrated equity-linked environment.
Monis will be an operating unit of SunGard Trading and Risk Systems, led by Emanuel Mond, co-founder and current co-chairman of Monis. The new unit will incorporate SunGardâs TrueCalc application for convertible bond pricing and analysis, in order to leverage the synergies between the Monis and TrueCalc applications.
Mr. Mond said of the acquisition, "Over the last two years, we set out on a course to rapidly transform Monis to provide new and enhanced solutions for our clients. We created a new front-office system, released the latest and most comprehensive spreadsheet based application, and enhanced our data services. While we continued to grow as a company over this period, we believe that it is now necessary to partner with an industry leader like SunGard to capture valuable synergies and strengthen our resource base. Our complementary strengths with SunGard will enable us to deliver innovative solutions to our clients and prospects."
Jim Ashton, chief executive officer of SunGard Trading and Risk Systems, said, "With over 350 customers worldwide, mainly blue-chip companies, Monis is a reputable leader in providing pricing models and data services to financial institutions. SunGard offers Monis clients the resources and security of an established, reliable vendor partner. As part of our strategy to integrate best-of-breed applications to create complete solutions, Monis will provide enhanced derivatives trading support to all of SunGardâs trading and risk management solutions. Pursuant to our strategy to bring best practice risk management to the buy side, Monisâ client base, which includes a large number of hedge funds, will help us to more effectively support the evolving needs of that market."