The Belgium Debt Agency has purchased Pricing Partners’ software with a view to strengthening its capacity for independent valuation and audit in its treasury and risks control departments. The public debt management agency, which is part of the Administration Financing of the State and Financial Markets within the General Administration of the Treasury, is using the Price-it solution to independently price, monitor and validate counterparty prices in its pre-trade and post-trade operations and within collateral calculation.
Gaëtan Wauthier, risk expert at the Belgium Debt Agency, explains the reasoning behind the selection: “We were looking for a solution that would allow us to monitor and check prices given by our counterparties. Besides, we wanted a generic pricing tool including a large set of implemented valuation models, which were state of the art yet, easy to implement. After benchmarking established pricing libraries, we found that Price-it conciliated ease of use and pricing sophistication.”
The assets covered by the valuations solution for the debt agency are interest rates, bonds and inflation linked products, says Eric Benhamou, CEO of Pricing Partners. “It enables them to check counterparties’ valuation, build a real pricing expertise and control risks better,” he adds.