Formation Markets
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Platform

Financial expertise,
built into software.

We are building a common financial environment in which people, specialist AI and quantitative models can investigate exposures, develop instruments and manage positions.

Evidence, terms, counterparties and obligations stay connected.

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Financial expertise becomes executable risk-transfer architecture People and specialist AI reason and challenge; quantitative models calculate consequences. Structuring, pricing and management use a common financial model connecting exposures, instruments, counterparties, mandates and positions. People & specialist AI Financial reasoning Quantitative engines Pricing & risk models StructuringTerms & documentation MarketClients, dealers & investors MonitoringPositions & obligations Exposures Instruments Counterparties Mandates Positions

Understand what
you are exposed to.

A public operating result can affect commercial income, a loan book or an investment position in different ways. The software is being built to connect the common reference to each institution’s private evidence, assumptions and objectives.

Users will be able to investigate those relationships and test the fit of a proposed contract. A payout tied to a public KPI can leave part of the institution’s actual loss uncovered.

A public operating reference connects private exposures and investment views.A defined public operating reference connects to each institution’s private cash flows, loans and investment positions. Its relationship to the underlying exposure must be assessed: contractual payout and actual loss can differ. INSIDE THE COMPANYOperating activity One operating outcome withinthe equity bundle. Published operating metricBookings · volumeThe company reports the result.It need not join the trade. A SHARED FINANCIAL REFERENCEThe public KPIDefinition · period · observation Tradable KPI claimsPriced separately from equity Commercial cash flowsKeep the commercial relationship. Loans and receivablesRetain the loan; hedge a loss driver.The KPI payout may not matchthe loan loss. Investment viewsTrade the result without owning equity.

Start with a programme.
Build through the business.

A first programme can become a continuing book, with client business, trading and investment using the same financial records.

The software is intended to grow with the institution’s work and the client and counterparty relationships it already has. More of the business can draw on the same models and methods as new programmes develop.

A first program expands into a customer's business and counterparty network A first programme develops into client programmes and trading and investment within an institution, connected to its clients and counterparties through Formation software.

Your clients.
Your book. Your business.

Brokers, dealers and investment firms will be able to use Formation for their own clients and private books, including business originated elsewhere. Each institution brings its own relationships, objectives and decisions.

Shared software and reviewed financial methods can support many institutions while confidential records remain separate.

Independent institutional businesses operate through Formation.Formation, an independent broker and an independent dealer retain their own clients and private books. Shared software supports instrument design, counterparty work and book operations. Our clients & investorsBroker’s clientsDealer’s clientsFormationDevelop markets and client business.Forward Deployed StructurersMandates & private book BrokerDevelop products for its own clients.Private client book DealerQuote, hedge and distribute risk.Inventory & retained positions Formation platformShared ontology of exposures, instruments and counterparties Instrument designResearch, pricing and simulationTest effects on the client’s book MarketQuotes, terms and allocationsTransfer new and existing positions Book operationsObligations and settlementReassessment and renewal

Build with Formation Markets.

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