SuperDerivatives Company Profile

Background

Overview

SuperDerivatives was a financial services company founded in 2000 by Dr. David Gershon, a former global head of exotic derivatives at Barclays Capital. The company specialized in providing real-time market data, derivatives technology, and valuation services for the financial and commodity markets. Its mission was to enhance transparency and efficiency in the derivatives market by offering accurate and accessible pricing models. In 2014, SuperDerivatives was acquired by the Intercontinental Exchange (ICE) for approximately $350 million.

Mission and Vision

SuperDerivatives aimed to democratize access to accurate derivatives pricing and risk management tools, enabling a broader range of financial institutions to participate effectively in the derivatives market. By providing cloud-based, real-time market data and valuation services, the company sought to foster greater market transparency and efficiency.

Industry Significance

SuperDerivatives played a pivotal role in transforming the derivatives market by introducing real-time, internet-based pricing tools. Its services were widely adopted by banks, hedge funds, corporations, brokers, central banks, and auditors, contributing to the growth and liquidity of the over-the-counter (OTC) options market.

Key Strategic Focus

Core Objectives

The company's primary objective was to provide accurate, real-time derivatives pricing and risk management solutions to financial institutions globally. This focus aimed to enhance market transparency, reduce bid-ask spreads, and increase liquidity in the derivatives market.

Areas of Specialization

SuperDerivatives specialized in multi-asset derivatives, including foreign exchange (FX), interest rates, equities, commodities, energy, and credit derivatives. Its services encompassed independent valuation, market data for mark-to-market, multi-asset derivatives front office and risk systems, and a multi-asset OTC execution platform.

Key Technologies Utilized

The company developed proprietary pricing models and analytics platforms, such as the SDX system, which combined technology for currency, interest rates, equities, commodities, energy, and credit derivatives. These tools were designed to provide accurate and real-time market data, enhancing the efficiency and transparency of derivatives trading.

Primary Markets Targeted

SuperDerivatives targeted a global market, serving financial institutions, including banks, hedge funds, corporations, brokers, central banks, and auditors across Europe, the Asia-Pacific region, and the Americas. Its services were particularly valuable in markets with less liquidity, where accurate pricing and risk management were essential.

Financials and Funding

Funding History

SuperDerivatives underwent two funding rounds, with the most recent being a debt financing round on February 1, 2008.

Acquisition by Intercontinental Exchange

In October 2014, Intercontinental Exchange (ICE) acquired SuperDerivatives for approximately $350 million in an all-cash transaction. This acquisition aimed to enhance ICE's market data and risk management capabilities, particularly in the derivatives market.

Pipeline Development

As of the latest available information, SuperDerivatives had developed several key products, including:

SDX System: A cross-asset derivatives pricing, structuring, and pre-trade analysis system that combined technology for various asset classes.

DGX Platform: A market data platform that provided real-time analytics, data, news, and multi-participant chat with video capabilities.

Following the acquisition by ICE, these products were integrated into ICE's trading and clearing platforms to enhance analysis and risk management capabilities.

Technological Platform and Innovation

Proprietary Technologies

SuperDerivatives developed proprietary pricing models and analytics platforms, such as the SDX system, which combined technology for various asset classes, and the DGX platform, a market data system providing real-time analytics and multi-participant chat with video capabilities.

Significant Scientific Methods

The company employed advanced quantitative models and analytics to provide accurate and real-time derivatives pricing and risk management solutions. These methodologies were designed to enhance market transparency and efficiency.

Leadership Team

Key Executives

David Gershon: Founder, Chairman, and CEO. Dr. Gershon founded SuperDerivatives in 2000 and served as its CEO until the company's acquisition by ICE in 2014.

Yuval Levy: Chief Technology Officer. Dr. Levy managed all technology and product development at SuperDerivatives from its inception until the acquisition.

Leadership Changes

Following the acquisition by ICE in 2014, SuperDerivatives' leadership transitioned to ICE's management structure. Specific details regarding individual leadership changes post-acquisition are not publicly disclosed.

Competitor Profile

Market Insights and Dynamics

The derivatives market is characterized by its complexity and the need for accurate, real-time pricing and risk management tools. The integration of SuperDerivatives into ICE's platforms aimed to enhance ICE's capabilities in this market, particularly in providing comprehensive data and risk management solutions.

Competitor Analysis

Key competitors in the derivatives data and analytics space include: