Mellon Financial Corporation has introduced an independent, over-the-counter (OTC) derivative valuation service for swaps, options and institutional clients. Mellon will provide these valuations through third party vendors, at the institution’s direction.
“A changing regulatory climate, along with increasingly tougher risk and compliance requirements, will motivate institutions to seek independent valuations so they do not rely entirely on their investment managers and prime brokers,” says Daniel Wywoda, a senior vice president at Mellon’s Asset Servicing group. “The market is moving toward suppliers that can provide independent valuations for a wide range of OTC derivatives besides the two most common, interest rate swaps and credit default swaps. We also can obtain valuations for default basket swaps, total return swaps, currency swaps and inflation swaps, among others.”