Bloomberg DLIB selected by Santander CIB to offer real-time structured product pricing

Bloomberg’s Derivatives Library (DLIB) has been selected by Santander Corporate & Investment Banking (Santander CIB) to provide its institutional clients with an automated way to model bespoke structured products, and calculate tradeable prices.

DLIB facilitates the workflow between sell and buy-side firms by allowing them to understand, trade and risk manage structured products, all in one solution. By integrating its quoting engine with DLIB via our model API, Santander CIB allows its clients to access real-time tradeable prices on the bank’s dealer page on the Bloomberg Terminal. In addition, DLIB provides both Santander CIB and the buy-side counterparty with clarity into deal characteristics, as well as back-testing and product life-cycle management capabilities.

Alfredo Madrigal, European Head of Equity Derivatives & ETDs at Santander CIB, said: “This agreement with Bloomberg is key within our strategy to balance (mainly through digitalization) our position on the structured products market with the bank’s position in the euro area by capitalization, taking advantage of our range of vehicles (including Sustainable Bond issuer), good rating and specialization on European and Latam underlying, everything carried out under our commitment to responsible banking.”

Karim Faraj, Global Head of Front Office Derivatives at Bloomberg, said: “We are pleased that Santander CIB has chosen to use DLIB to structure deals and provide prices to its clients in real-time. Sell- side firms are increasingly looking for ways to extend the reach of their distribution channels for structured products. By adopting DLIB to calculate and distribute prices, banks are able to service their clients faster and more efficiently, and buy-side firms also benefit from improved decision-making and risk management capabilities.”

Bloomberg offers an integrated, cross-asset solution for structured products including underlying data, pricing, risk management and reporting tools. In 2019, the company won the Risk Markets Technology Award for “Pricing and analytics: structured products and cross-asset” and the Chartis RiskTech100 Award for “Pricing & Analytics – Fixed Income” and “Pricing & Analytics – Multi-asset”. According to the judges for the Risk Award:  “The extensive integrated end-to-end framework for structured product and cross-asset pricing, with a choice of proprietary Bloomberg applications or in-house add-ons, make this a powerful tool.” Additionally, Bloomberg won the Waters Technology Award for Best Sell-Side Front-Office Platform in 2019, as well as several awards from Structured Retail Products in technology, pricing and risk categories.

DLIB allows firms to create structured products quickly and easily – whether single, cross-asset, baskets or hybrids – by providing access to pre-existing and custom templates. It allows users to model theoretical pricing, on an individual and a portfolio basis, and analyse the risk of deals, including exotic and hybrid payoffs.

DLIB is integrated with Bloomberg’s suite of Enterprise Products such as TOMS, a sell-side order management system, AIM, a buy-side order management system, and MARS, Bloomberg’s Multi Asset Risk System, to streamline the workflows from pre-trade to post-trade, front to back. 

To access the press release in Spanish: Bloomberg DLIB seleccionado por Santander para productos estructurados

About Banco Santander

Banco Santander (SAN SM, STD US, BNC LN) is a leading retail and commercial bank, founded in 1857 and headquartered in Spain. It has a meaningful presence in 10 core markets in Europe and the Americas, and is the largest bank in the euro zone by market capitalization. Its purpose is to help people and businesses prosper in a simple, personal and fair way. Santander is building a more responsible bank and has made a number of commitments to support this objective, including raising over €120 billion in green financing between 2019 and 2025, as well as financially empowering more than 10 million people over the same period. At the end of 2019, Banco Santander had EUR 1.05 trillion in total funds, 145 million customers, of which 21.6 million are loyal and 37 million are digital (52% of active customers), 12,000 branches and 200,000 employees. Banco Santander made underlying profit of EUR 8,252 million in 2019, an increase of 2% compared to the previous year.

Santander CIB is Santander’s global division that supports corporate and institutional clients, offering tailored services and value-added wholesale products suited to their complexity and sophistication, as well as to responsible banking standards that contribute to the progress of society.

 About Bloomberg

Bloomberg, the global business and financial information and news leader, gives influential decision makers a critical edge by connecting them to a dynamic network of information, people and ideas. The company’s strength – delivering data, news and analytics through innovative technology, quickly and accurately – is at the core of the Bloomberg Terminal. Bloomberg’s enterprise solutions build on the company’s core strength: leveraging technology to allow customers to access, integrate, distribute and manage data and information across organizations more efficiently and effectively. For more information, visit Bloomberg.com/company or request a demo.