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

A-Team Insight Blogs

GlobeOp Aims to Provide More Transparency Around OTC Derivative Valuations

As part of its ongoing push in the OTC derivatives valuations space, GlobeOp Financial Services has added on demand access to valuation and reconciliation processing data via its integrated OTC derivatives processing platform, GoOTC. According to the vendor, its fund manager clients can gain increased transparency across OTC trade lifecycles and can demonstrate independent portfolio pricing and valuation confirmation to their investors via this single web-based portal.

GlobeOp currently processes approximately 3% of the daily global OTC derivatives trade volume and its platform is aimed at meeting trade capture, valuation, reconciliation, operations, collateral management and documentation requirements. The new features enable fund managers to filter portfolios based on reconciliation and confirmation status, and to drill down to and compare trade specific valuation details on this platform.

“Our goal with these enhancements is to bring our clients closer to their data,” explains Jon Anderson, global head of OTC derivatives at GlobeOp. “Greater transparency and independent valuation is a priority across funds, from the front office to risk managers and fund investors. Access to timely, detailed derivative trade status data supports daily trading strategies, collateral management and overall portfolio management. Funds can also benefit from reduced operational cost and risk as STP is delivered on a single, integrated derivatives processing platform.”

The valuation enhancements include increased visibility of comparative detail as available from multiple pricing sources. Trade valuation and tolerance status is available, as well as current and historical valuations. New reconciliation process monitoring enables fund managers to access counterparty position and valuation reconciliations. Drill downs to breaks and resolution audit trails are now possible as a result of the upgrade. Trade status transparency includes customised reconciliation and trade documentation search criteria. Colour coded indicators provide fund managers with a quick overview of reconciliation and confirmation processes.

Anderson continues: “These enhancements reflect our continuing development of services that provide clients with greater transparency and automation benefits. In addition, our significant technology investments provide clients with scale and instrument coverage that most funds could not achieve on their own.”

Regulators across the globe are attempting to crack down on the mispricing of assets and to force institutions to get a better handle on their counterparty risk and their valuations data. The recent discussions by the global regulators regarding greater international harmonisation around fair value pricing are a case in point. The buy side in particular is being compelled to understand what category a price is coming from under FAS 157 in the US, for example. Accordingly, vendors in the valuations space are being bolstered by the need for firms to gain pricing data from independent sources and to provide more data around valuations.

Related content

WEBINAR

Recorded Webinar: A new way of collaborating with data

Digital transformation in the financial services sector has raised many questions around data, including the cost and volume of reference data required by each financial institution. Firms want to pick and choose the reference data they need to fulfil their requirements. Emerging solutions with the potential to decrease the cost of data and increase flexibility...

BLOG

Hargreaves Lansdown Selects Investment Control Systems for Data Management, Analysis and Reporting

Hargreaves Lansdown, the UK’s largest digital wealth management service, has selected Investment Control Systems (ICS) as its partner for investment data management, analysis and reporting. ICS was selected after a vendor evaluation and peer review that started in early 2021. Hargreaves Lansdown will initially use the ICS ATHENA cloud-based solution as a centralised platform for...

EVENT

RegTech Summit New York City

Now in its 5th year, the RegTech Summit in NYC explores how the North American financial services industry can leverage technology to drive innovation, cut costs and support regulatory change.

GUIDE

Trading Regulations Handbook 2021

In these unprecedented times, a carefully crafted trading infrastructure is crucial for capital markets participants. Yet, the impact of trading regulations on infrastructure can be difficult to manage. The Trading Regulations Handbook 2021 can help. It provides all the essentials you need to know about regulations impacting trading operations, data and technology. A-Team Group’s Trading...