About a-team Marketing Services
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

Upcoming Webinar: Generative and Agentic AI in Financial Markets: What the Data Really Shows

Date: 15 October 2026 Time: 10:00am ET / 3:00pm London / 4:00pm CET Duration: 50 minutes Artificial intelligence is reshaping financial markets – but the reality on the ground is more nuanced, more uneven, and more instructive than the headlines suggest. A new A-Team Insight research programme, drawing on responses from senior AI decision-makers at...

BLOG

Rush to Build AI into Risk Models Creating Dangerous Capability ‘Gaps’

Asset managers may be exposing themselves to operational vulnerabilities as they rapidly integrate artificial intelligence and agents into their risk management systems, often without first ensuring trust in the data that will feed the models. A survey found that three-quarters of 178 senior investment leaders questioned said they expect the pace of AI and agents...

EVENT

TradingTech Summit London

Now in its 16th year, the TradingTech Summit London brings together senior leadership across capital markets trading technology and market data. Join us to deep dive into key opportunities and challenges driving technological transformation across sell-side and buy-side firms.

GUIDE

AI in Capital Markets Handbook 2026

AI adoption in capital markets has moved into a more disciplined phase. The priority is now controlled deployment: where AI can be used safely, where it can deliver measurable value, and how outputs can be governed, monitored and evidenced. The 2026 edition of the AI in Capital Markets Handbook examines how AI is being applied...