SIX Telekurs has signed a partnership agreement with CSV Incorporated in order to expand its evaluated pricing for illiquid securities with complex structures. The vendor has added CSV as a source of independent, transparent valuations for complex securities to provide its customers with more coverage and greater depth of information, explains Barry Raskin, managing director of SIX Telekurs in the Americas.
“In these turbulent times, our clients are looking for better ways to value illiquid securities with complex structures,” says Raskin. “CSV is an ideal, independent partner for pricing these investments, because of their expertise and because their valuation process is transparent – making it appropriate for compliance with Basel II, IAS 39 and FAS 157.”
Perry Beaumont, principal at CSV, elaborates on the vendor’s offering, which covers a range of fixed income and credit asset classes: “For illiquid securities where prices are not generally available from more traditional sources, we offer a unique solution where quantitatively oriented methods are applied along with market-based inputs and comparisons, and we deliver a mid-market indication of price.”
The vendor launched its valuations service last year, at which point it partnered with Frankfurt-based valuations provider ValuePrice, a specialist in structured products in particular. In March, Telekurs expanded its fair value coverage yet further still to include a total of 57,000 straight and zero bonds, and 27,000 floating rate notes.
The new partnership combines both vendors’ specialist knowledge claims Beaumont: “Each firm plays a role in the creation and delivery of the daily pricing, with SIX Telekurs providing instrument level reference data that we need to ensure accurate valuation, as well as the global distribution network which helps ensure effective distribution of the resulting valuations.”