National Bank of Commerce to Offer Hedging Products with Assistance from Derivative Path
Will use its cloud-based OTC trading platform, DerivativeEDGETM, to manage trade execution, sales, operations and Dodd-Frank compliance of its interest rate derivatives activity
SAN FRANCISCO, CA AND BIRMINGHAM, AL (May 11, 2016) – National Bank of Commerce and Derivative Path, Inc. have teamed up to offer interest rate hedging products to commercial borrowers of National Bank of Commerce. The bank, with $1.75 billion in assets and operations in Alabama, Florida, and Georgia, is a wholly owned subsidiary of National Commerce Corporation (NASDAQ: NCOM).
“As we reviewed options to allow us to provide our customer base with interest rate protection products, it became clear to us that Derivative Path would be an excellent partner,” said William E. Matthews, V, Vice Chairman and Chief Financial Officer of NBC. “It was critical that we select an advisor with a full array of products, a powerful technology platform, and a wealth of experience,” continued Matthews. “With Derivative Path and its DerivativeEDGE technology platform, we are confident in our ability to offer our commercial borrowers outstanding interest rate protection products.”
As part of its relationship with NBC, Derivative Path helped with policies and training, and its technology platform is customized to manage the trades efficiently.
The state-of-the-art DerivativeEDGETM platform has been designed to be a complete end-to-end solution for derivative trading and servicing. With DerivativeEDGETM, users have front-, mid-, and back-office functionality in one platform, eliminating the inefficiencies of working with disparate systems to manage different aspects of the business. The platform comes complete with real-time market data and connectivity to DTCC for swap data reporting, and to Markit for cleared trade affirmation. The system is designed within a framework that also aids users in meeting their Dodd-Frank requirements related to the execution of transactions with commercial clients and dealer counterparties, as well as ongoing data and document retention requirements. Administrators are able to manage user profiles with roles-based permissions and workflows to ensure controls and appropriate separation of duties.
“We are thrilled to have National Bank of Commerce working with our team,” said Pradeep Bhatia, Co-Founder and Co-CEO of Derivative Path. “National Bank of Commerce is a quickly growing, trusted bank in the Southeast, and the decision of the bank’s senior management to enlist Derivative Path’s help to be able to use these tools for the bank’s balance sheet, and to be able to offer the bank’s commercial clients the full suite of interest rate hedging tools offered by other larger financial institutions in the region, is quite gratifying and a testament to the team and technology that we have assembled for financial institutions and end-user clients. We look forward to assisting National Bank of Commerce and its clients in managing interest rate risk through the ever-changing interest rate environment for many years to come.”
About Derivative Path, Inc.
Derivative Path is a San Francisco Bay Area-based company that provides a technology-led solution to assist financial institutions, buy-side, and commercial end users in executing and managing their over-the-counter interest rate derivative transactions.
The Derivative Path team is comprised of derivative industry veterans who have held senior positions with some of the world’s largest capital markets firms, such as Wells Fargo, ABN AMRO, Societe Generale, Bank of America, and JPMorgan Chase.
The team has developed a state-of-the-art derivative trading platform, DerivativeEDGETM, which it makes available to all of its clients. The platform gives derivatives counterparties the confidence to operate a hedging program and manage their trades in compliance with all regulatory requirements, with assistance provided for all pre-trade, trade execution, and post-trade life cycle events.
For more information about Derivative Path, visit www.derivativepath.com.
About National Commerce Corporation/National Bank of Commerce
National Commerce Corporation (Nasdaq: NCOM), a Delaware corporation, is a financial holding company headquartered in Birmingham, Alabama. Substantially all of the operations of NCC are conducted through the company’s wholly owned subsidiary, National Bank of Commerce. NBC currently operates seven full-service banking offices in Alabama (in Birmingham, Huntsville, Auburn-Opelika, and Baldwin County), ten full-service banking offices in Central Florida (in Vero Beach through National Bank of Commerce; in Longwood, Winter Park, Orlando, and Oviedo through United Legacy Bank, a division of National Bank of Commerce; and in Tavares, Port Orange, St. Augustine, and Ormond Beach through Reunion Bank of Florida, a division of National Bank of Commerce), and one loan production office in Atlanta, Georgia. NBC provides a broad array of financial services for commercial and consumer customers.
For more information about NCC and NBC, visit www.nationalbankofcommerce.com.
Derivative Path, Inc.