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.
