Public authorities are getting equipped with independent valuations tools for their structured products. The current financial crisis has highlighted the need for monitoring and independent valuations tools to better understand and measure the risks faced by derivatives products.
Pricing Partners, an independent valuation provider, has developed software and applications to offer its clients valuation tools as accurate as the ones of trading rooms. This gives them the ability to play on an equal ground with traders of major banks and obtain valuable information about the true value of their large portfolios of structured product. And recently the company has seen the emergence of new actors such as public authorities wishing to analyse and get independent valuation on their derivatives portfolio.
Pricing Partners has confirmed that the Belgium Debt Agency has purchased its software in order to strengthen its capacity for independent valuation and audit in its Treasury and risks control departments. The assets coverage concerns interest rates, bonds, and inflation linked products. The tool is used to independently price, monitor and validate counterparties prices in pre-trade and post-trade operations and collateral calculation. The software developed by former professionals of the capital markets provides for the first time a truly independent valuation tools for derivatives.
“We chose Pricing Partners to value our derivative positions,” says Gatan Wauthier, Expert risk. “We were looking for a solution that would allow us to monitor and check prices given by our counterparties. Besides, we wanted a generic pricing tool including a large set of implemented valuation models which are state of the art yet easy to implement. After benchmarking established pricing libraries, we found that Price-it conciliated ease of use and pricing sophistication.”
D.C.