The leading knowledge platform for the financial technology industry
The leading knowledge platform for the financial technology industry

A-Team Insight Blogs

SIX Telekurs White Paper: Transparency in Evaluated Pricing

In an effort to help bring clarity and understanding about transparency in evaluated pricing, SIX Telekurs is pleased to announce the release of a new white paper that describes our thoughts and practices. The paper will be discussed publicly for the first time in a workshop at the upcoming A-Team “Data Management for Risk, Analytics and Valuations” conference in New York on May 17th.

SIX Telekurs applies quantitatively-oriented methods along with a broad range of market-based inputs and comparisons to provide daily or intraday prices for securities that are not quoted and cannot be priced using standard valuation methods.

Within this context, transparency in evaluated pricing is commonly cited as an elusive and difficult to define concept. In an effort to coalesce conversations about transparency, SIX Telekurs has published a white paper intended to offer a clear and practical definition of what transparency means within the context of our own Evaluated Pricing service.

“In the more tightly regulated post-crisis environment, it isn’t enough to simply describe a methodology. Customers also need to understand the details of the inputs and assumptions that are used, especially when the instruments being evaluated are complex, distressed and/or truly illiquid, as is the case today with many structured products” said Perry Beaumont, head of Evaluated Pricing research & development for SIX Telekurs.

Beaumont continued, “At a minimum, SIX Telekurs is happy to offer a copy of our methodology document, and we are always open to providing reference documents that may help our clients understand the particular valuation processes we use. But perhaps even more importantly, when clients need more, we are always open to in-depth discussions that will help both parties understand and appreciate the nuances of a particular approach or even of a specific valuation.”

SIX Telekurs will present the paper, “The SIX Telekurs Commitment to Transparency: A thought-leadership piece on Evaluated Pricing” at a workshop within the A-Team Group’s upcoming Data Management for Risk, Analytics and Valuations conference in New York City on May 17th. Please note that attendance at the workshop, which is scheduled for 11:00 AM on the day, is open to the public and not limited to conference registrants.

Following the conference, the white paper and recording of the workshop will be available for download from the A-Team’s Reference Data channel.

The SIX Telekurs Evaluated Pricing service employs a patented pricing methodology that allows us to reverse-engineer the most complex structures, which means we can value distressed securities across the full spectrum – from commercial paper to straight bonds to complex structured instruments. The service covers a wide range of asset classes, including fixed income, equities, commodities, precious metals and foreign exchange, and provides comprehensive documentation such as key pricing parameters and consistent valuation methodologies.

To sum up the company’s approach to transparency in evaluated pricing, Ian Blance, head of Evaluated Pricing business development for SIX Telekurs said, “We view transparency as an ongoing evolution of processes and methodologies that are continuously subject to evaluation and review in order to make them more meaningful and ultimately more accountable to client needs.”

Related content

WEBINAR

Recorded Webinar: Evolution of data management for the buy-side 2021

The buy-side faced a barrage of regulation in 2020 and is now under pressure to make post-Brexit adjustments and complete LIBOR transition by the end of 2021. To ensure compliance and ease the burden of in-house data management, many firms turned to outsourcing and managed services. But there is more to come, as buy-side firms...

BLOG

Refinitiv Highlights Data Governance, Cloud and Operational Resilience as Key Components of Connected Data and Revenue Generation

Connecting data across a financial services organisation from the back office, through the middle-office and on to the front-office can deliver operational resilience, business agility, and opportunities to generate revenue – it can also be difficult to achieve in a market characterised by fragmented systems, a lack of data consistency, and resistance to change. A...

EVENT

RegTech Summit APAC Virtual

RegTech Summit APAC will explore the current regulatory environment in Asia Pacific, the impact of COVID on the RegTech industry and the extent to which the pandemic has acted a catalyst for RegTech adoption in financial markets.

GUIDE

Fatca – Getting to Grips with the Challenge Ahead

The industry breathed a sigh of relief when the deadline for reporting under the US Foreign Account Tax Compliance Act (Fatca) was pushed back to July 1, 2014. But what’s starting to look like perhaps the most significant regulation of the next 12 months may start to impact our marketplace sooner than we think, especially...