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

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: Mastering Data Lineage for Risk, Compliance, and AI Governance

    Financial institutions are under increasing pressure to ensure data transparency, regulatory compliance, and AI governance. Yet many struggle with fragmented data landscapes, poor lineage tracking and compliance gaps. This webinar will explore how enterprise-grade data lineage can help capital markets participants ensure regulatory compliance with obligations such as BCBS 239, CCAR, IFRS 9, SEC requirements...

    BLOG

    S&P Global Data via Cloud: Unlocking Real-Time, Scalable Insights with Snowflake and Databricks Delta Sharing

    As organisations accelerate their cloud migration strategies to manage growing volumes of structured and unstructured data, demand is rising for secure, real-time, cloud-native access to trusted datasets. Leveraging Snowflake and Databricks Delta Sharing, S&P Global provides a scalable, agile foundation that allows organizations to directly access and query S&P Global and curated third-party datasets without...

    EVENT

    TradingTech Summit New York

    Our TradingTech Briefing in New York is aimed at senior-level decision makers in trading technology, electronic execution, trading architecture and offers a day packed with insight from practitioners and from innovative suppliers happy to share their experiences in dealing with the enterprise challenges facing our marketplace.

    GUIDE

    Regulatory Data Handbook 2025 – Thirteenth Edition

    Welcome to the thirteenth edition of A-Team Group’s Regulatory Data Handbook, a unique and practical guide to capital markets regulation, regulatory change, and the data and data management requirements of compliance across Europe, the UK, US and Asia-Pacific. This year’s edition lands at a moment of accelerating regulatory divergence and intensifying data focused supervision. Inside,...