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

GlobeOp Aims to Provide More Transparency Around OTC Derivative Valuations

Subscribe to our newsletter

As part of its ongoing push in the OTC derivatives valuations space, GlobeOp Financial Services has added on demand access to valuation and reconciliation processing data via its integrated OTC derivatives processing platform, GoOTC. According to the vendor, its fund manager clients can gain increased transparency across OTC trade lifecycles and can demonstrate independent portfolio pricing and valuation confirmation to their investors via this single web-based portal.

GlobeOp currently processes approximately 3% of the daily global OTC derivatives trade volume and its platform is aimed at meeting trade capture, valuation, reconciliation, operations, collateral management and documentation requirements. The new features enable fund managers to filter portfolios based on reconciliation and confirmation status, and to drill down to and compare trade specific valuation details on this platform.

“Our goal with these enhancements is to bring our clients closer to their data,” explains Jon Anderson, global head of OTC derivatives at GlobeOp. “Greater transparency and independent valuation is a priority across funds, from the front office to risk managers and fund investors. Access to timely, detailed derivative trade status data supports daily trading strategies, collateral management and overall portfolio management. Funds can also benefit from reduced operational cost and risk as STP is delivered on a single, integrated derivatives processing platform.”

The valuation enhancements include increased visibility of comparative detail as available from multiple pricing sources. Trade valuation and tolerance status is available, as well as current and historical valuations. New reconciliation process monitoring enables fund managers to access counterparty position and valuation reconciliations. Drill downs to breaks and resolution audit trails are now possible as a result of the upgrade. Trade status transparency includes customised reconciliation and trade documentation search criteria. Colour coded indicators provide fund managers with a quick overview of reconciliation and confirmation processes.

Anderson continues: “These enhancements reflect our continuing development of services that provide clients with greater transparency and automation benefits. In addition, our significant technology investments provide clients with scale and instrument coverage that most funds could not achieve on their own.”

Regulators across the globe are attempting to crack down on the mispricing of assets and to force institutions to get a better handle on their counterparty risk and their valuations data. The recent discussions by the global regulators regarding greater international harmonisation around fair value pricing are a case in point. The buy side in particular is being compelled to understand what category a price is coming from under FAS 157 in the US, for example. Accordingly, vendors in the valuations space are being bolstered by the need for firms to gain pricing data from independent sources and to provide more data around valuations.

Subscribe to our newsletter

Related content

WEBINAR

Recorded Webinar: ESG data sourcing and management to meet your ESG strategy, objectives and timeline

ESG data plays a key role in research, fund product development, fund selection, asset selection, performance tracking, and client and regulatory reporting, yet it is not always easy to source and manage in a complete, transparent and timely manner. This webinar will review the state-of-play on ESG data, consider the challenges of sourcing and managing...

BLOG

SIX Extends Provision of Fixed Income Data with Acquisition of Majority Share in FactEntry

SIX has acquired a majority stake in FactEntry, a global provider of fixed income reference data, analytics and solutions for financial market participants. The acquisition enhances SIX’s data offering and meets customer demand for the company to expand its global fixed income footprint. FactEntry’s fixed income data sets, including reference data and corporate actions, will...

EVENT

Buy AND Build: The Future of Capital Markets Technology, London

Buy AND Build: The Future of Capital Markets Technology London on September 19th at Marriott Hotel Canary Wharf London examines the latest changes and innovations in trading technology and explores how technology is being deployed to create an edge in sell side and buy side capital markets financial institutions.

GUIDE

Pricing and Valuations

This special report accompanies a webinar we held a webinar on the popular topic of Pricing and Valuations, discussing issues such as transparency of pricing and how to ensure data quality. You can register here to get immediate access to the Special Report.