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

A-Team Insight Blogs

BNY Mellon Asset Servicing Launches New Fair Value Pricing Offering

Subscribe to our newsletter

BNY Mellon Asset Servicing has announced the launch of its new Fair Value Pricing offering, allowing clients to undertake a revaluation of equity and futures positions in markets that have closed prior to the valuation point of the fund.

Principal benefits include:

• More accurate asset valuation and hence a more accurate fund NAV

• Flexibility to tailor application to client specific requirements

• Pre-defined criteria enable automated generation of adjusted values

• Process significantly automated with appropriate audit trail and reports.

BlackRock is the first adopter of the new service, which is initially being introduced as a London Noon service, covering North and South America markets. As an example, a valuation adjustment of US equity in a fund valued at 12:00 noon UK time will take into account events after the local market closure that impact the security price up to the valuation point of the fund.

An ‘Evaluated Adjustment Factor’ for each individual security is generated, which can be applied to the local closing price to adjust it for post-closing market movements. A ‘Confidence Level’ is provided for each security as a measure of the probability of a relationship between a given security and the factors in the models.

The service also allows for Fair Value to be invoked at the asset level per fund and can be tailored in line with individual client requirements such as fund specific markets in scope and confidence level. The flexibility of the model also allows for additional valuation points to be added subject to client need.

BNY Mellon will be expanding the service to cover additional markets and valuation points in the coming months.

Tony Stenning, head of UK Retail at BlackRock, said: “BNY Mellon’s new fair value pricing offering has allowed us to replace the existing manual service and offers distinct benefits in terms of timeliness, level of detail and flexibility.”

Frank Froud, head of Europe, Middle East & Africa at BNY Mellon Asset Servicing, said: “Our new service offers an on-demand, tailored approach to fair value pricing that allows our clients to benefit from an increased level of confidence via both pre- and post-NAV reporting and analysis, including back testing. We are very pleased the new service has received this vote of confidence from BlackRock, and we look forward to working with them in the future to further extend the scope of the service.”

Subscribe to our newsletter

Related content

WEBINAR

Recorded Webinar: FRTB: What still needs to be done before the global deadline of January 2023?

While implementation of Fundamental Review of the Trading Book (FRTB) regulation has been delayed twice for reasons first of complexity and second of the coronavirus pandemic, the final deadline of January 1, 2023 is less than a year away. For banks in scope of the regulation, the time to put necessary risk infrastructure and data...

BLOG

DSB Opens Annual Consultation on OTC ISIN and CFI Service Provision

The Derivatives Service Bureau (DSB) has opened its annual consultation on OTC ISIN and CFI service provision for 2023. The consultation paper is published on the DSB website with responses open until 5 pm UTC, Monday 30 May 2022. A final report will be published on Thursday 30 June 2022. The consultation focuses on topics...

EVENT

ESG Data & Tech Summit

The inaugural ESG Data & Tech Summit will explore challenges around assembling and evaluating ESG data for reporting and the impact of regulatory measures and industry collaboration on transparency and standardisation efforts. Expert speakers will address how the evolving market infrastructure is developing and the role of new technologies and alternative data in improving insight and filling data gaps.

GUIDE

Enterprise Data Management, 2010 Edition

The global regulatory community has become increasingly aware of the data management challenge within financial institutions, as it struggles with its own challenge of better tracking systemic risk across financial markets. The US regulator in particular is seemingly keen to kick off a standardisation process and also wants the regulatory community to begin collecting additional...