About a-team Marketing Services
The knowledge platform for the financial technology industry

A-Team Insight Blogs

Derivative Valuations at UCITS Funds – Regulatory Requirements and Best Practices

Subscribe to our newsletter

OTC Valuations Limited (OTC Val), a leading provider of independent valuation and transparency reports for structured products and OTC derivatives, is pleased to announce it has released a white-paper outlining the regulatory requirements and best practices at UCITS funds for derivative valuations.

Key points from the paper, available from www.otcvaluations.com, include:

  • OTC derivatives are now permitted to be used as part of a UCITS’ general investment policy.
  • UCITS must have a primary valuation source that is verified by an independent third party or through an independent unit within the UCITS.
  • All OTC derivative valuations should be verified on a daily basis.
  • There are considerable costs and benefits of automating a valuation process, where some UCITS will take the challenge of bringing the process in-house process, while others will substantially benefit by outsourcing the process.
  • Bob Sangha, partner at OTC Val, notes that “while most jurisdictions have accepted the counterparty valuation as the primary source, all jurisdictions mandate price verification by an independent source. And while the frequency of price verification ranges, best practice is moving towards weekly and daily reports. These valuation reports should be sufficiently transparent such that the UCITS is able to readily understand the results.”

    Subscribe to our newsletter

    Related content

    WEBINAR

    Recorded Webinar: Taming the Private Markets Data Beast: Solving for Valuation, Integration, and Reporting in Alternative Investments

    Available On-Demand Institutional activity in private markets has surged as organisations’ traditional investment theses have been upended by global economic volatility, geopolitical instability and fee compression. In their search for better risk-adjusted returns, they have found a rich seam of alpha from private equity and credit, real assets, venture and hedge funds, as well as...

    BLOG

    Overcoming Legacy Hurdles to Cloud Migrations: Webinar Review

    Many financial institutions are still struggling to safely move their data into the cloud, hammered by a paucity of suitable technology and the prevalence of fragmented pipelines. Decades of piecemeal system development, critical business logic, order flows, risk models and market data feeds have created architectures that has left data isolated an disconnected. As well,...

    EVENT

    ExchangeTech Summit London

    A-Team Group, organisers of the TradingTech Summits, are pleased to announce that the second ExchangeTech Summit London will take place in May 2027. This dedicated forum brings together operators of exchanges, alternative execution venues and digital asset platforms with the ecosystem of vendors driving the future of matching engines, surveillance and market access.

    GUIDE

    Regulatory Data Handbook 2026 – Fourteenth Edition

    Welcome to the fourteenth edition of A-Team Group’s Regulatory Data Handbook. Supervisors increasingly expect firms to demonstrate which rules apply, which data supports each obligation, who owns the control and how exceptions are identified and resolved. Policies and implementation programmes must now be supported by records that can withstand regulatory scrutiny. This edition examines material...