Dexia Fund Services to use SunGard's Reech FastVal for independent valuations

Source: SunGard Trading and Risk Systems

SunGard Trading and Risk Systems, an operating group of SunGard (NYSE:SDS), today announced that Dexia Fund Services (DFS), the investment funds administration and custodian services business line of European financial services group Dexia, has selected SunGard's Reech FastVal.

DFS will use SunGard's Reech FastVal to provide independent valuation of its clients' credit default swaps, interest rate vanilla and exotic derivatives, equity swaps, convertible bonds and inflation products. This will help DFS to provide an additional value added service and assist the board of directors of the funds to comply with new regulations.

The fund administration industry increasingly confronts pressure for independent valuation from regulators and investors who seek transparency in pricing and processes. SunGard's Reech FastVal helps fund administrators to provide independent, accurate and speedy computations of the fair value and first order 'Greeks' of portfolios containing any product from cash equities to complex exotics.

Christophe Bodart, head of product development at DFS Luxembourg, said, "With Reech FastVal we can publish fund net asset values with maximum transparency and confidence in the valuations we are using for the underlying securities. This enhances our service offering and complies with the new UCIT III regulation regarding independent valuations of OTC products. Also, we like the ASP facet of the service since it allows easy deployment at any location."

Dexia Group already uses Reech in its capital market and funding activities to price complex derivatives.

Christophe Reech, president of SunGard's Reech operating unit, said, "Correctly valuing OTC derivative portfolios can be difficult, requiring substantial infrastructure investment. The need for independent valuations is driven both by investors, and increasingly regulators, seeking to reduce the risks of loss caused by incorrect valuations. Reech FastVal provides accurate valuations from an independent source within a fully secure, resilient ASP-based environment."

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