London-based global market-based information provider, IHS Markit on Monday has announced the launch of its over-the-counter (OTC) derivatives valuation platform to financial institutions for best execution compliance.
It will provide time-stamped data which will help firms to monitor intraday performance and historical transaction costs across foreign exchanges and other OTC derivatives. This offering will ensure meeting global regulations on transparency regarding financial market transactions and help meet the need for the standardised valuation procedures and reporting documentation of complex trades in OTC markets.
The time-stamped and valuation data will be available for a range of market products like interest rate, equity, forex, credit, commodity and structured product OTC derivatives.
IHS Markit Data also provides OTC trade slippage calculations to financial institutions through leveraging its Portfolio Valuations data and methodology. This allows it to calculate trade slippage, which the firms can use to confirm execution quality and generate reports on trading effectiveness.
Commenting on the launch, Laura Misher, MD of derivatives data and valuation services at IHS Markit said:
“Financial institutions need to validate and contextualize the effectiveness, quality, and timeliness of each transaction. In terms of compliance, OTC trades are the most difficult to manage due to their complexity and the availability of quality market data. As a leading source of market data on OTC derivatives with significant breadth of inputs, we are uniquely positioned to help firms address these challenges by providing transparent valuations and inputs that can be used for transaction cost analysis.”
Michael Richter, Executive Director of trading analytics at IHS Markit also added:
“As the regulatory frameworks have expanded from equities to bonds and OTC assets, the requirements for data and analytics have also become increasingly complex. With this in mind, we are committed to enabling firms to reduce the cost and burden of compliance through our comprehensive suite of best execution solutions.
