Icap and Fincad have launched a new solution to address the growing need for increased transparency and independent valuations allowing better liquidity, counterparty and operational risk management. Fair Value Insight is a secure web-based derivatives valuation solution built on Fincad’s industry standard analytics and Icap’s market data.
The solution enables corporate treasuries, banks, asset management firms and other financial and non-financial institutions to meet their risk management, independent valuation and regulatory compliance needs. It provides valuations for interest rate, FX, commodities, OTC derivatives, and debt securities, ensuring valuations are transparent and accurate.
Fair Value Insight, integrated with Icap market data, provides best practices valuation processes through automated reporting capabilities, allowing users to leverage a consistent valuation process with reports automatically delivered via email as frequently as needed. Portfolio level valuations enable users to stay up to date with their derivatives positions, enabling them to react more quickly to changes in their net derivatives positions and audits.
“Active risk management through ongoing measurement and up to date knowledge of derivative cash flows for liquidity and capital management is now a business necessity,” says Lawrence Leuzzi, managing director of Icap Information Services. “We are pleased to work with Fincad, an industry leader in financial analytics, to address the record market demand for accurate third party valuations with Fair Value Insight. The new Fair Value Insight offering complements Icap’s market data suite and will greatly help our customers with their valuation needs.”
“As markets remain volatile, counterparty, liquidity and capital concerns remain high on most institutions’ radars,” says Cubillas Ding, senior analyst at Celent. “The ability to monitor and manage cross risk effects in a more proactive and cohesive manner can determine a firm’s ability to not only sidestep undue vulnerabilities, but also to facilitate effective decision making in relation to ongoing market movements and regulatory overheads for risk taking. Forward thinking firms are looking to underpin these efforts with consistent accounting and risk measurements by requiring a high level of precision, consistency and clarity for ongoing valuation of derivative portfolios.”
“We are thrilled to be working with a trusted global provider of market data such as Icap to equip clients with easy to use and accurate valuation solutions for risk measurement in today’s market,” says Bob Park, president and CEO of Fincad. “With transparency as a key component of active risk management, Fair Value Insight provides a complete view of valuations models, assumptions and methodology enabling users to comply with regulatory requirements including FAS 157 and IFRS 7.”