Brian Willinsky, +1 781-687-8291
Europe and Asia-Pacific
+44 (0)20 7825 8012
Interactive Data Expands OTC Derivatives Valuation Service
Service Now Includes Independent Coverage of Credit Default Swaps and Select CDS Indices
Tuesday, May 15, 2012
Dateline: New York and London
Category: Product News
May 15, 2012 - Interactive Data Corporation, a leading provider of independent pricing and evaluation services, today announced the expansion of its OTC Derivatives Valuation Service to include independent evaluations of Credit Default Swaps (CDS) and select CDS Indices.
The expanded service is designed to provide additional transparency into CDS and CDS Index evaluations, thereby helping clients to more effectively value their diverse portfolios and enhance their risk management and compliance practices. This CDS transparency will be supported by Vantage(SM), Interactive Data's Web application that provides clients with extensive data and transparency into the fixed income market and the Company's evaluations.
"We believe that institutions worldwide will need to accelerate their investments in OTC derivatives valuations and the related technology infrastructure to respond to regulatory change and support their ongoing risk, capital, collateral, liquidity and accounting activities," stated Cubillas Ding, research director for the securities and investments practice at Celent, a leading research and advisory firm.
Celent's November 2011 report, "Dodd-Frank and EMIR Derivatives Reforms," highlights how derivatives pricing and valuation technologies "will form one of the backbones for the new architecture post-Dodd Frank and EMIR." Interactive Data was cited in the report as one of the global market data providers that could leverage its scale to provide broad services that will allow financial firms to achieve benefits by rationalizing their sourcing of valuation providers.
"The strength of Interactive Data's bond evaluation capabilities uniquely positions us as a leading CDS evaluated pricing service for a wide range of issues," said Mark Heckert, senior director, Evaluated Services for Interactive Data. "Our CDS evaluation methodology incorporates Interactive Data's widely-used, award-winning* bond evaluations, which is especially important for less liquid names where there is limited market color."
"The CDS trade and CDS valuation processes at financial institutions are subject to much more scrutiny than ever before," added Liz Duggan, managing director, Global Evaluations for Interactive Data. "Our OTC Derivatives Valuation service was developed in response to persistent demand from our bond evaluation clients for independent CDS evaluations and increased transparency into how these evaluations are produced."
Interactive Data's CDS evaluation service covers a wide range of single name corporate, sovereign and U.S. municipal entities, and CDX™ and iTraxx™ index trades. Beginning at approximately 16:30 ET each trading day, the service provides CDS evaluations, curves and analytics in support of clients' portfolio valuation, financial reporting, risk management, trading, and related functions.
For more information about the CDS evaluation service, please click here.
About Interactive Data Corporation
Interactive Data is a proven industry leader, providing major financial institutions and corporations worldwide with award-winning, timely, high-quality independent evaluated prices to support their mission-critical operations. The Company delivers daily evaluations representing approximately 100 countries and 30 different currencies for 2.8 million financial instruments. Thousands of financial institutions worldwide, ranging from central banks to large investment banks to hedge funds, subscribe to Interactive Data's daily evaluated pricing.
Pricing, evaluations and reference data are provided in the US through Interactive Data Pricing and Reference Data, Inc. and internationally through Interactive Data (Europe) Ltd. and Interactive Data (Australia) Pty Ltd.
For more information about Interactive Data please visit: www.interactivedata.com.
* For the third consecutive year, Interactive Data was named 'Best Evaluated Prices Service Provider by Inside Market Data and Inside Reference Data in 2011.'
For further information, please contact:
Brian Willinsky (US media)
Tel: +1 781-687-8291
Geoff Whitehouse (European and Asia-Pacific media)
Tel: +44 (0)20 7825 8012