UK market data vendor Markit Group is working with six Wall Street banks to launch a global, multi-bank, cross-asset client valuations platform.
The Markit Valuations Manager platform will provide electronic delivery of daily OTC derivative and consensus cash valuations from Citi, Credit Suisse, Goldman Sachs, JPMorgan, Merrill Lynch and UBS alongside Markit's own independent valuations.
Recent regulatory and accounting changes have increased the importance of reliable, independent valuation sources for funds, says Markit and the new platform will provide the buy side with an "accurate, efficient tool to handle the increased regulatory and accounting burden".
The new system will also enhance the integrity of position information, counterparty marks and third-party valuations, says the vendor.
"Regulators around the world are increasingly focused on the importance of greater transparency, establishing best practice for client valuations, and a trusted, independent process is key," says Jeff Gooch, EVP and head of valuations and trade processing, Markit.
David Lefferts, managing director at Markit, will lead the new initiative.
The platform is expected to launch in the second half of 2008 with core coverage of bonds and derivatives. Markit says the system will subsequently be expanded in phases to include more banks and all major cash and derivative asset classes, including structured instruments such as asset-backed and mortgage-backed securities.
In recent weeks both Nyse Euronext and Reuters have launched valuations services for asset management portfolios of complex and structured financial products.