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Bank of New York Adds Valuations for European Swaptions, FX Options and OTC Equity Options

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The Bank of New York has expanded its independent valuation service for OTC derivatives to include European swaptions, foreign exchange options and OTC equity options, in addition to the interest rate swaps and credit default swaps already covered. The bank is currently undergoing a merger with Mellon Financial Corporation, which recently announced the availability of its own OTC derivatives valuation service (Reference Data Review, January 2007).

In addition to independent valuations of derivatives, the Bank of New York also has also recently established a derivatives product team led by Ahmad Sharif, managing director within its Global Investor Services operation. This team is working to create an end to end process for servicing derivatives used by the bank’s hedge fund and institutional investor clients.

The Bank of New York’s clients can access daily valuations of their global OTC derivative portfolios as part of the account information available via the bank’s internet-based information delivery and transaction platform INFORM.
Richard Stanley, executive vice president and head of Global Investor Services product management and accounting services at the Bank of New York, says: “This expansion of our service greatly enhances our ability to report on OTC derivatives valuations, which improves our clients’ capacity to monitor and assess their holdings, as well as understand and manage their risks.”

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