The Photon Financial Hub has been designed to support both Product Control and Financial Control equally, which is unique for this market and means offering P&L Explain functionality.
Adam Hill (Founder and CEO) said: “being an advanced Financial Hub implies that we have included P&L Explain functionality right from the start. We designed into the system the ability to input P&L explain figures from a provisioning Front Office system, with capability to handle all the known attributes and Greeks, including reserving some space for extensions. We have ensured that P&L explain figures can be input alongside the standard daily valuations data”.
“The system will calculate financial P&L then compare this to the front office explained P&L to allow detection of unexplained P&L, and be able to drill down on this right to transaction level. The system provides a heatmap of unexplained P&L by portfolio and product, and any unexplained is lodged as a “case” needing action. The cases are dealt with by workflow, inputting corrections which reduce the unexplained to zero or within tolerance plus an explanation. When the heatmap has no unexplained P&L, the analyst’s job for that day has been completed. System reports will then provide a complete picture to management”.
“In summary, we trust that Photon’s more rounded approach to Financial and product Control will be appreciated in the market”.
Co-Founder Paul Newton, also commented: “In my experience the Product Control function has been underserved in terms of “off the shelf” technology. There are vendors who will offer bespoke solutions but no-one has taken the time to build in the capability into a product from the ground up. By tightly coupling this functionality with the GL and the traditional multi-GAAP Accounting Engine and Subledger we feel that Photon offers something unique for Finance and Product Control in the Capital Markets space”