A-Team Insight Blogs

IHS Markit Extends Use of OTC Derivatives Valuations to Best Execution Compliance

IHS Markit has extended the use of its OTC derivatives valuation data to financial institutions working on best execution compliance. The time-stamped valuation data can help firms monitor intraday and historic transaction costs across interest rate, equity, FX, credit, commodity and structured product OTC derivatives.

Laura Misher, managing director of derivatives data and valuation services at IHS Markit, says: “Financial institutions need to validate and contextualise the effectiveness, quality and timeliness of each transaction. In terms of compliance, OTC trades are the most difficult to manage due to their complexity and the availability of quality market data.” The IHS response, based on the company’s market data on OTC derivatives, is the provision of transparent valuations and inputs that can be used for transaction cost analysis.

Using its industry standard portfolio valuations data and methodology, IHS Markit can calculate OTC trade slippage, which is the difference between the executed and expected price of transactions. Trade slippage can be expressed in a range of price or market sensitivity terms and firms can use this information to confirm execution quality and prepare reports on trading effectiveness.

Leave a comment

Your email address will not be published. Required fields are marked *

*

Share article

Related content

WEBINAR

Recorded Webinar: Enterprise Solutions – Solvency II

This webinar has passed, but you can view the recording here. Devesh Shukla, Global Head of Reference Data Product Development, Bloomberg and Cynthia Sachs, Global Head of BVAL Product Development, Bloomberg discuss Solvency II. Webinar Date: February 28, 2014 Speakers: Sponsors:

BLOG

UK Insurer Chooses Pricing Partners for the Independent Valuation of its Interest Rate and Equity Structured Products

Pricing Partners announced today that one of the largest UK insurers has selected Pricing Partners’ online independent valuation platform, Price-it Online for its interest rates and equity structured products. This UK insurer, which wishes to remain anonymous, develops and offers tailored investment solutions to its clients. The firm needed an extremely sophisticated and accurate solution...

EVENT

Data Management Summit London

Now in its 8th year, the Data Management Summit (DMS) in London explores the shift to the new world where data is redefining the operating model and firms are seeking to unlock value via data transformation projects for enterprise gain and competitive edge.

GUIDE

Regulatory Data Handbook 2018/2019 – Sixth Edition

In a testament to the enduring popularity of the A-Team Regulatory Data Handbook, we are delighted to publish a sixth edition for 2018-19 of our comprehensive guide to all the regulations and rules that might impact data and data management at your institution. As in previous editions of the Regulatory Data Handbook, we have updated...