Trade data provider Parameta Solutions and over-the-counter (OTC) analytics firm Numerix have partnered to create a new OTC derivatives valuations service.
The announcement comes in response to recent increases in regulation around accounting standards and the need for model transparency and transaction substantiation.
Parameta’s OTC data and Numerix’s analytical capabilities will create a “more effective” way of valuing OTC derivatives, the companies say.
Ovie Koloko, chief product officer at Parameta Solutions, says: “As the regulatory requirements for third-party outsourcing, transparency, and risk factor liquidity have increased, the challenge of obtaining accurate and up-to-date valuation services has become more difficult. Simultaneously, technological changes are forcing financial institutions to reconsider their existing architecture and the data sources driving critical applications.
“By working together with Numerix, we believe that we can offer a solution to an issue that has only become more pronounced as financial institutions make greater use of OTC derivatives.”
Steven O’Hanlon, president and CEO of Numerix, adds: “Transparency is a key factor in the growth of OTC markets. It is essential to have transparency in data, models, and their calibration to ensure confidence while trading these products.”
