The Bank of New York is expanding its independent valuation service to include European swaptions, foreign exchange options and OTC equity options. The Bank already provides valuation services for interest rate swaps and credit default swaps.
The bank’s clients have access to daily valuations of their global OTC derivative portfolios as part of the account information available to them through INFORM, its Internet-based reporting platform.
“As greater numbers of institutional investors include the use of derivatives in their investment strategies, the demand for independent pricing has never been greater”, says Richard P. Stanley, executive vice president and head of Global Investor Services Product Management and Accounting Services at The Bank of New York.
Stanley stressed that the Bank’s derivatives-related offerings represent a core competency that will grow in sophistication as such clients increasingly utilize derivatives globally.
In addition to independent valuations of derivatives, the bank recently established a derivatives product team led by Ahmad Sharif, a managing director within Global Investor Services, which is responsible for servicing derivatives used by hedge funds and institutional investors.