The leading knowledge platform for the financial technology industry
The leading knowledge platform for the financial technology industry

A-Team Insight Blogs

FT Interactive Data Adds Markit’s Swaps, CMS BondEdge’s Analytics

Share article

The strategic relationship between Interactive Data Corp.’s FT Interactive Data unit and credit data specialist Markit has borne its first fruits. As expected (Reference Data Review, January 2006), FT Interactive Data has released a valuations service for credit default swaps that draws on Markit’s access to around 50 CDS dealers in the marketplace.

The launch of the new offering coincides with the addition of IDC sister company CMS BondEdge’s fixed-income evaluations to the FT Interactive Data product lineup. The company has incorporated BondEdge’s fixed-income pricing and analytics capabilities into its FTS bond evaluations service as part of a move toward closer integration with a view to optimizing complementary capabilities.

The new credit default swaps valuation service is aimed at providing firms that hold or trade in these instruments a means of assessing consistent valuations for the securities. Customers will be able to review their swaps portfolios and identify holdings to be valued with the option of using Markit’s Reference Entity Database (RED) codes for doing so. Once they have identified the security to be valued, users can issue a valuation request through the system. Markit and FT Interactive Data then provide a cleaned average price derived from the 50 dealers operating in the credit default swaps marketplace.

The new service is to be made available to clients as an add-on to FT Interactive Data’s evaluation services and can be integrated into a module of FT Interactive Data’s portfolio administration service. In addition to CDS valuations, FT Interactive Data clients will also have access to supporting information from Markit, such as spread curves, recovery rates, par spreads, accrued interest and present value deltas.

Meanwhile, FT Interactive Data’s new tie-in with sibling CMS BondEdge will integrate the latter’s fixed-income portfolio analytics with the FTS platform. The CMS BondEdge analytics will be available through two new FTS modules covering assumptive and risk data. The new assumptive data module provides access to the assumptions – such as the spread and yield – used to arrive at an evaluation. The risk data module shows the risk measures, such as option-adjusted duration and convexity.
The addition of CMS BondEdge’s tools will allow FTS users to download measures such as option-adjusted spread and option-adjusted duration. The idea is to allow users to monitor market rate risk associated with a broad range of fixed-income securities, for which evaluations are available from FT Interactive Data. These will include specialist securities such as U.S. collateralized mortgage obligations (CMOs).

Related content

WEBINAR

Recorded Webinar: Last minute preparations for SFTR: What still needs to be done and are we ready?

The regulation clock is ticking. Financial firms, especially those subject to Phase I of implementation, are well aware of the impending April 2020 deadline for the Securities Financing Transactions Regulation. The question is, are they ready? Tactical, i.e painful, approaches to compliance won’t be good enough. A strategic plan of attack is necessary to combat...

BLOG

GLEIF Deploys Workiva Platform, Expands into North America

The GLEIF Foundation partnered with XBRL International and Workiva in June 2020 to publish its annual report in both human and machine-readable Inline XBRL and HTML format, with GLEIF’s LEI embedded into the financial information. It constitutes only the second official business report globally to automatically link the filing entity to its verified LEI reference...

EVENT

Data Management Summit London

Now in its 10th year, the Data Management Summit (DMS) in London explores how financial institutions are shifting from defensive to offensive data management strategies, to improve operational efficiency and revenue enhancing opportunities. We’ll be putting the business lens on data and deep diving into the data management capabilities needed to deliver on business outcomes.

GUIDE

Complex Event Processing

Over the past couple of years, Complex Event Processing has emerged as a hot technology for the financial markets, and its flexibility has been leveraged in applications as diverse as market data cleansing, to algorithmic trading, to compliance monitoring, to risk management. CEP is a solution to many problems, which is one reason why the...