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Hungary’s OTP Bank Deploys SuperDerivatives’ Revaluation Service to Improve Hedging and Transparency

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OTP Bank, the biggest commercial bank in Hungary, has selected SuperDerivatives (SD), the derivatives benchmark, to provide market-accurate revaluations for its varied derivatives portfolio.

Krisztian Kovacs, head of middle office department at OTP Bank, comments: “We needed a reliable, independent view of the value of the broad range of vanilla and complex FX and interest rates derivatives on our books, in order to accurately hedge risk and maximise business activities across Central and Eastern Europe.”

OTP Bank chose SD-Reval, SD’s comprehensive, independent and market reflective revaluation solution for entire derivatives portfolios, which covers an extensive range of hard to price liquid and illiquid assets.

Supported by a proven pricing model, SD-Reval provides the highest levels of transparency and enables companies to comply with required accounting, auditing and regulatory requirements and standards such as FAS 133, FAS 157, IAS 39, IFRS, MiFID Best Execution and SAS 70.

Kovacs continues: “We have a significant amount of complex structures on our books, which many revaluation services simply could not accurately price. SD-Reval tackles these valuation issues head on with an exceptionally accurate pricing model. We have been hugely impressed with how closely the portfolio valuations provided by SD match the actual market value for these structures.”

David Shulman, senior sales director at SD, comments: “In the last couple of years we have invested significant R&D efforts into meeting customers’ needs for third party revaluation in a shifting financial landscape.

“Our prompt reaction means that OTP Bank and other customers across the buy and sell side can now benefit from a service that spans all asset classes and instrument types, delivering fully-automated, same day revaluation of even the largest portfolios.

“This also allows banks to improve their customer service, ensuring that customers have the independent, fair market value of their portfolio as soon as they need it.”

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