SuperDerivatives, the benchmark for derivatives, reports a 250% increase in demand for its derivatives revaluation from banks and asset managers across both developed and emerging markets.
The business offers a full revaluation service for derivatives and has reported the increase in customer acquisition and sales over the past year as more institutions adopt third party evaluation as best practice.
SuperDerivatives provides portfolio evaluation for all major OTC (over the counter) and exchange– traded derivative asset classes. The service is designed to help financial professionals from institutions around the globe including banks, asset managers, wealth managers, hedge funds, regulators, custodians, corporates and accountants.
It provides an independent evaluation for the broadest coverage of asset classes and geographical reach, which helps organisations manage risk, generate revenue opportunities and independently revalue multi– and single–asset portfolios, either for their own holdings or those of their customers and clients.
A bank or auditor, for example, can use the service to gain an independent, transparent and effective valuation for derivatives based on data from multiple, trusted sources. This is widely considered more effective than simply asking for a quote from a single counterparty, for example, to reach a valuation.
The need for an independent evaluation service has become even more pronounced, with regulators including the Financial Services Authority writing to businesses to confirm the requirement to consider third party evaluation services as part of their procedures.
Feedback from the tier 1 and tier 2 banks has revealed a need for independent evaluation data across equities, credit, commodities and FX, including yield curves and swaptions in FX for the major currencies and emerging market currencies. These are components that SuperDerivatives offers as part of its revaluation service.
Over the last three weeks alone, hundreds of market professionals have attended independent evaluation workshops in London, New York and Dublin.
The seminars focused on the critical need for independent cross–asset evaluation and feedback revealed a wide range of needs and concerns with existing valuation practices. More are now planned to meet demand from institutions.
David Gershon, CEO, SuperDerivatives said: "Tier 1 banks and asset managers are increasingly turning to us for help in gaining independent, unbiased valuations for their derivatives portfolios.
"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."
Dr Chris Sier, Director of financial market consultancy, Alpha FMC, comments: "A source of reliable, accurate and wide–ranging pricing data is essential for asset managers and, by extension, their outsourced service providers. Not only is it fundamental for accurate NAV calculations, particularly in a retail environment, it is also the cornerstone of efficient collateral management."
About SuperDerivatives
SuperDerivatives is transforming the world of options by introducing transparency to major traded derivative classes including foreign currency, interest rates, equities, commodities, energy and credit. Aiming to provide prices that reflect the inter–dealer market has led the company´s web–based, market–calibrated platforms to become widely accepted by market participants as the benchmark for options pricing. Trading professionals on both the buy and sell side benefit daily from SuperDerivatives´ unique combination of unbiased, aggregated market data and sophisticated modelling techniques.
The company also provides fully–fledged risk management systems, an on–line trading platform, award winning derivatives data, and independent portfolio revaluation services. Customers include leading banks, hedge funds, asset managers, custodians and hedge fund administrators.
