GlobeOp Financial Services (GlobeOp) is launching an integrated UCITS lll outsourcing application for mutual funds and custodian banks that provides independent daily valuation and risk reporting for over-the-counter (OTC) derivatives.
The GlobeOp application enables mutual funds to take advantage of derivative market opportunities by resolving trade processing infrastructure challenges and responding to the regulatory requirements of the European Union’s UCITS III directive.
“GlobeOp is ideally suited to support mutual funds and custodian banks interested in benefiting from UCITS lll, because we now value or process more than 1300 trades daily, averaging approximately 230,000 open positions in more than 60 types of distinct OTC derivative products. This represents approximately 3% of the global daily OTC derivative trading volume.
As many mutual funds and custodian banks are now learning, the complexity and volume of OTC trades create additional stress on internal trade processing systems, compounded by UCITS lll requirements for independent and daily valuations and risk analytics. Many funds and custodian banks simply do not have the robust, scalable infrastructure needed to take advantage of derivative market opportunities quickly.
Our tailored UCITS lll service package combines GoOTC and GoRisk Reports, two well-established services, which offer independent, transparent, web-based valuations, document & collateral management, settlement and daily risk reporting. Although funds are ultimately responsible for regulatory compliance, our UCITS lll solution greatly increases their ability to focus on generating returns, while benefiting from a proven, scalable infrastructure and reduced technology-related investment,” says Ron Tannenbaum, global head of sales and marketing at GlobeOp.
An automated, ‘plug and play’ application for OTC processing, GoOTC incorporates standardised data and processes to reduce operational and settlement risks related to inaccurate trade entry, reconciliation and liquidity. In addition, GoOTC provides online access to critical data for fund risk managers and financial control teams.
To help funds demonstrate their ability to monitor and measure position and portfolio risk, GoRisk Reports provides an ASP risk reporting service.