SunGard says that Dexia Fund Services (DFS) – the fund administration and custody arm of Dexia – will use SunGard’s Reech FastVal application to provide independent valuation of its clients’ credit default swaps, interest rate vanilla and exotic derivatives, equity swaps, convertible bonds and inflation products. Dexia Group already uses Reech in its capital market and funding activities to price complex derivatives.
SunGard says the fund administration industry increasingly confronts pressure for independent valuation from regulators and investors who seek transparency in pricing and processes. “SunGard’s Reech FastVal helps fund administrators to provide independent, accurate and speedy computations of the fair value and first order ‘Greeks’ of portfolios containing any product from cash equities to complex exotics,” explains a SunGard spokesman.
Christophe Bodart, head of product development at DFS Luxembourg, says Reech FastVal allows the firm to publish fund net asset values with maximum transparency and confidence in the valuations. “This enhances our service offering and complies with the new UCIT III regulation regarding independent valuations of OTC products,” he says. “Also, we like the ASP facet of the service since it allows easy deployment at any location.”
Christophe Reech, president of SunGard’s Reech operating unit, says valuing OTC derivative portfolios can be difficult, requiring substantial infrastructure investment. “The need for independent valuations is driven both by investors, and increasingly regulators, seeking to reduce the risks of loss caused by incorrect valuations,” he says. “Reech FastVal provides accurate valuations from an independent source within a fully secure, resilient ASP-based environment.”