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

A-Team Insight Blogs

Derivative Valuations at UCITS Funds – Regulatory Requirements and Best Practices

Subscribe to our newsletter

OTC Valuations Limited (OTC Val), a leading provider of independent valuation and transparency reports for structured products and OTC derivatives, is pleased to announce it has released a white-paper outlining the regulatory requirements and best practices at UCITS funds for derivative valuations.

Key points from the paper, available from www.otcvaluations.com, include:

  • OTC derivatives are now permitted to be used as part of a UCITS’ general investment policy.
  • UCITS must have a primary valuation source that is verified by an independent third party or through an independent unit within the UCITS.
  • All OTC derivative valuations should be verified on a daily basis.
  • There are considerable costs and benefits of automating a valuation process, where some UCITS will take the challenge of bringing the process in-house process, while others will substantially benefit by outsourcing the process.
  • Bob Sangha, partner at OTC Val, notes that “while most jurisdictions have accepted the counterparty valuation as the primary source, all jurisdictions mandate price verification by an independent source. And while the frequency of price verification ranges, best practice is moving towards weekly and daily reports. These valuation reports should be sufficiently transparent such that the UCITS is able to readily understand the results.”

    Subscribe to our newsletter

    Related content

    WEBINAR

    Recorded Webinar: Executing the Migration to Cloud to Enable Scalability and Innovation

    Cloud-based services and processing have become essential to financial institutions as their data management demands have become more complex and expansive. Thousands of organisations have made the jump from their limited on-premises tech stacks to the near-infinite scalability opportunities of public and private clouds. They have also been motivated by the need to modernise their...

    BLOG

    Ataccama Signals Product Focus with New CEO Appointment

    Ataccama has appointed its former chief technology officer Martin Zahumensky as its new chief executive in a move that highlights the company’s focus on products in the next few years. Zahumensky replaces Mike McKee, an operations-oriented leader who had sat in the top seat since 2023 and helped to drive the Boston-based data trust company’s...

    EVENT

    TradingTech Summit London

    Now in its 15th year the TradingTech Summit London brings together the European trading technology capital markets industry and 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

    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...