Markit, a global financial information services company, today announced it has extended the range of instruments covered by its Portfolio Valuations service to include commodities. The addition of commodities is a major milestone in Markit’s ongoing programme to develop a comprehensive, independent valuations service.
Markit now provides valuations for commodity derivatives such as forwards, swaps (bullet swaps, averaging swaps, spreads and basis swaps) and vanilla options. The markets covered include: oil, refined products and chemicals; natural gas and power (North America and Europe); base metals; precious metals; agriculture and other soft products; coal; emissions; freight; and commodity indices.
Valuations are provided on a daily, weekly or monthly basis. Markit’s valuations are calculated using industry standard models and a wide variety of data inputs sourced from market making banks, exchanges, clearing houses, interdealer brokers and participants in the physical commodities markets.
Markit’s Portfolio Valuations service provides independent, post-trade asset pricing to mutual funds, hedge funds, traditional asset managers, fund administrators, custodians, private banks and corporates. The service covers a range of cash and derivative instruments – both vanilla and exotic – across the major asset classes.
Kevin Borrett, managing director of Portfolio Valuations at Markit, said: “We are pleased to have added commodities to our Portfolio Valuations service which provides independent valuations for all the major OTC derivative markets. Commodity derivatives represent a very large and active asset class and our clients will benefit from the additional transparency we will provide through our new service.”
