Interactive Data has added a price validation workflow to its Vantage web application for evaluated pricing transparency. The Vantage Price Validation Workflow module automates pricing exception handling and validation processes, cutting out typically manual processes and reducing operational costs.
The price validation workflow is designed to provide a central hub for client validation activities and supports this with automated loading of portfolio, market and exception data files, allowing users to review a range of market and assumptive data alongside Interactive Data content in a user-friendly interface.
Mark Wilson, product manager for Evaluation Services at Interactive Data, explains: “The core of this update to the Vantage workflow is a tolerance checking process around movement in evaluated prices. The update provides a central place where the price validation process is carried out and exceptions are identified. The process is viewed on a single screen, so individual users, pricing teams and managers can see what is occurring through the same view and the process can be audited. Tolerance checking is performed in a quick and intuitive way, increasing efficiency and reducing cost.”
The exception review process in the workflow allows users to accept a price, accept a price conditionally and link it to a price challenge, or override the price and insert an alternative.
The pricing validation workflow is designed not only to bring efficiency and automation to the pricing review process, but also to help firms meet regulatory, Topic 820 and IFRS 13 transparency requirements on pricing. Wilson suggests the update will be useful for anyone dealing with price movements, particularly accountants, collateral managers and risk managers. He comments: “If there is a significant movement in the valuation of an asset, it could have a direct impact on exposure. Risk managers can use the workflow to see these movements and discover whether they will have a material impact on a portfolio and its exposure.”
Looking forward, Wilson says the next developments in price validation functionality include more reporting options and increased calculation capability.
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