Despite the downturn in the market, derivatives valuations provider SuperDerivatives claims it has experienced a 250% increase in demand for its services over the past year. The vendor says there has been an increase in customer acquisition and sales over the past year as more institutions adopt third party evaluation as best practice.
According to SuperDerivatives, the need for an independent evaluation service has become even more pronounced, with regulators including the UK Financial Services Authority (FSA) writing to businesses to confirm the requirement to consider third party evaluation services as part of their procedures. The vendor claims that over the last three weeks, a large number of market professionals have attended its evaluation workshops in London, New York and Dublin.
The seminars focused on the need for independent cross asset evaluation and feedback revealed a wide range of needs and concerns with existing valuation practices, says the vendor. David Gershon, CEO of SuperDerivatives, explains: “Independent evaluation is clearly set to become best practice and a key part of the solution to many of the issues facing market participants. An independent pricing view helps to meet their compliance needs, manage investment and operational risk and regulatory compliance more easily and effectively across a vast range of securities.”