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

A-Team Insight Blogs

DerivActiv Expands Services to Cover FAS 157 Reporting Requirements

Subscribe to our newsletter

DerivActiv, a provider of independent derivatives valuations, has expanded its services to include non-performance risk adjusted valuations for FAS 157 reporting of derivative products. The vendor explains that it has developed a proprietary procedure to evaluate non-performance risk and adjust mid-market values to comply with the fair value reporting requirements.

According to the vendor, its adjustment methodology has been used in financial reports and its process has been reviewed by national and regional accounting firms. Johan Rosenberg, president of DerivActiv, explains: “With the emphasis on exit price determination, the changing credit characteristics of each counterparty must be taken into account in determining fair value. Changes in the marketplace affect the exit price and require an adjustment to the standard mid-market valuation.”

Under FAS 157, fair value is defined as the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. This new definition focuses on the exit price of the instrument rather than an entry price.

The vendor says its solution is a response to the growing need for independent valuations and transparency in all derivative transactions. Accordingly, DerivActiv will provide FAS 157 valuations for derivatives including plain vanilla swaps, swaptions, knock-outs, CMS swaps, equity swaps, foreign currency swaps, range accrual swaps and other exotic derivative structures.

Subscribe to our newsletter

Related content

WEBINAR

Recorded Webinar: Are you making the most of the business-critical structured data stored in your mainframes?

Fewer than 30% of companies think that they can fully tap into their mainframe data even though complete, accurate and real-time data is key to business decision-making, compliance, modernisation and innovation. For many in financial markets, integrating data across the enterprise and making it available and actionable to everyone who needs it is extremely difficult....

BLOG

Regulations in the Balance as Institutions Remain Sustainability-Focussed: ESG Summit London Review

Despite a perception that ESG is in retreat around the world, financial institutions continue to take the issue very seriously as a matter of risk management, a trend that continues to exert an influence on the data demands of organisations. It isn’t even the compliance imperatives of organisations operating in heavily regulated parts of the...

EVENT

Data Management Summit London

Now in its 16th year, the Data Management Summit (DMS) in London brings together the European capital markets enterprise data management community, to explore how data strategy is evolving to drive business outcomes and speed to market in changing times.

GUIDE

AI in Capital Markets: Practical Insight for a Transforming Industry – Free Handbook

AI is no longer on the horizon – it’s embedded in the infrastructure of modern capital markets. But separating real impact from inflated promises requires a grounded, practical understanding. The AI in Capital Markets Handbook 2025 provides exactly that. Designed for data-driven professionals across the trade life-cycle, compliance, infrastructure, and strategy, this handbook goes beyond...