A pioneering tool for accurately valuing over-the-counter (OTC) and exchange-traded derivatives was launched today to hundreds of fund managers at the industry’s key annual conference in Monaco.
SuperDerivatives (SD), the derivatives benchmark, announced the launch of its Revaluation Investigation and Analysis system (RIAS) to validate valuations for complex and vanilla derivatives in all asset classes, heralding the application as a milestone to assist professionals managing all sorts of financial instruments.
RIAS is a powerful web based interactive application. It allows the user to provide a set of shifts in the underlying yield curves and volatility surfaces and the system displays the resulting valuations and associated risk measures.
The tool enables users to analyse the pricing assumption of individual trades and for price sensitivity comparison and stress testing of large portfolios of instruments. The results are shown within SD’s various displays and can be exported to a spreadsheet, to in-house systems, or third party application.
Participants in the marketplace find it challenging to compute accurate valuations and risk measures or to validate data from multiple external sources. The newly released RIAS service is a solution to this problem. A number of major fund managers have now deployed SD’s RIAS for valuation of their fund clients’ portfolios.
Fund administrators are looking for an independent comparison of data based on various assumptions, an effective independent source, accurate and transparent market data, and a consistent process that could be shared with its clients. SD’s new service addresses these requirements.
RIAS is an enhanced capability to SD’s broad suite of applications and data services that address the needs of the OTC market. It utilises cloud computing and sophisticated methods to accelerate calculations of risk measures in large portfolios.
David Gertler, director of strategic sales at SD, comments: “We firmly believe this will mark a sea change in the way fund managers mange and value OTC and exchange traded derivatives for their clients.”
“These are instruments which have a real world use to manage risk. Regulators agree that seeking an independent valuation based on the best available data across the widest range of instruments is best practice. We have delivered the tool for this need.”
“SD’s new investigation and analysis system offer a truly world-class service for investors, with its rich combination of analytics, wide asset coverage, proven technology and unrivalled risk management tools.”
SD is widely considered the independent global benchmark for derivatives, offering the most comprehensive and trusted multi-asset derivatives pricing, revaluation and management tools available for the widest range of derivative instruments and asset classes. It is delivered as a web based Software-As-A-Service (Saas) model, which is both quick and cost-effective to deploy.