Reech Capital PLC has signed a deal with Daiwa Securities Trust and Banking (Europe) plc in Dublin, to be its provider of regular mark-to-market valuations of the OTC equity derivative elements contained within hedge fund client portfolios.
Reech says that Daiwa is the third Dublin fund administrator to select its independent valuation tool in the last three months. “This demonstrates the growing demand that fund administrators are facing from both regulators and fund managers for independent valuations of OTC products,” says Reech. “This demand is driven by the increase in the number of hedge funds which are the biggest users of OTC products.”
Reech Capital will provide independent valuations to Daiwa using FastVal, its online portfolio valuation engine, which allows users to calculate the fair value and hedging ratios of portfolios containing cash products, derivatives or securities financing products. FastVal covers the equity, fixed income, forex and credit derivatives markets. It uses Reech Capital’s pricing and risk management models as well as the firm’s independent market parameters database to provide an outsourced valuation solution for portfolios of all sizes.
“We in Daiwa are committed to providing the most reliable and accurate portfolio pricing service for our alternative investment clients,” says Karl McEneff, Managing Director of Daiwa Securities Trust and Banking. “We see our deal with Reech Capital as a key development in fulfilling our role as a provider of independent and transparent prices to the alternative investments market.”
Christophe Reech, chief executive of Reech Capital, added: “We are delighted to have Daiwa as a client. As the third fund administrator in Dublin to use FastVal, they are clearly demonstrating their commitment to being a major player in the fund administration market.”