VANCOUVER, CANADA -- OTC Valuations Limited, a provider of over-the-counter independent derivatives valuation and risk reports, today announced that it has introduced a service aimed at providing primary, secondary, and tertiary valuations of both vanilla and exotic derivative instruments. OTC Val's solution is based on five elements: accuracy, speed, independence, cost effectiveness, and convenience.
Bob Sangha, one of the firm's founders, elaborates, "We provide our clients fair value insight through unbiased and independent valuations based on quoted market data, carefully calibrated models, and proven valuation methodologies. Our services help firms reduce their operational risk and achieve valuation transparency for their derivative portfolios. Standing behind what we deliver, we truly focus on customer service, and strive to build relationships where we are your trusted partner."
With increased regulatory and institutional investor focus on the transparency and accuracy of derivative valuations, independent derivative valuations are becoming essential for organizations. In the past, buy-side organizations relied on their prime brokers or counterparties to provide valuations for derivatives. Sangha adds, "With regulators questioning the validity of using prime brokers or counterparties as independent valuation sources, we are seeing more and more banks, hedge funds, and other buy-side organizations that invest in illiquid OTC derivatives relying less and less on their brokers or counterparties for valuations. Instead, they are now focusing on using independent derivative valuation service providers."
While many evaluated pricing data vendors, such as S&P and FT Interactive have made great strides at improving their infrastructure to address the needs of clients in overcoming regulatory drivers such as Sarbanes-Oxley or accounting standards like FAS 157, a significant gap remains for illiquid and structured products. As buy-side organizations, such as banks, hedge funds, institutional investors, and alternative investment vehicles increase their exposure to structured products in search of higher returns, there is an implicit and growing requirement for market data vendors, fund administrators and custodians to facilitate independent pricing services for exotic and structured derivative products.
OTC Val is committed to working with market data vendors, fund administrators, custodians, and other sell-side and buy-side organizations in addressing their independent derivative valuations needs, particularly for achieving greater transparency for exotic derivatives. OTC Val offers services for:
• Scheduled Valuation and Risk Reports as your primary pricing source.
• Pre-Deal Pricing as a sanity check for an instrument you are buying or selling.
• Benchmark Pricing as a complimentary pricing source to your dealer marks or existing solution.
• Interim Solutions until you are able to fill the analytical or market data gaps.
• White-Labeled Services for your clients.
For derivatives that can be replicated with vanilla, liquidly-traded, instruments and valued in a model-independent way, the focus is on mark-to-market valuation using high-quality market data from leading brokers and data vendors. For exotic and structured products with limited price discovery and imperfect replication, OTC Val's market professionals offer mark-to-model valuation based on careful calibration of industry standard models.
With increased regulatory and investor focus on the transparency of derivative valuations, independent valuations are becoming essential for organizations. As the complexity of derivatives contracts and valuation methodologies increase, so too will the lack of valuation transparency.
OTC Val's services provide organizations with the ability to meet internal risk and compliance controls and address growing market pressures among regulators and investors for transparent and accurate valuations. Through strong vendor partnerships, OTC Val is able to evolve with and meet the current and future valuation needs in the market.
For more information please contact OTC Valuations Ltd:
www.otcvaluations.com
info@otcvaluations.com
+1 604 275 5220
+44 (0)207 503 7266
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