Icap (IAP.L), the world's premier interdealer broker, and Prism Valuation, a leading provider of mark to market and valuations services, have finalised an agreement that will allow Prism Valuation to use Icap data as the main underlying source of OTC information for its services.
The agreement between ICAP Information Services, ICAP's market data division, and Prism Valuation covers a broad range of OTC data generated from ICAP's interdealer broker activities and will be used to assist in the valuation of complex structured products.
Antoine Kohler, Managing Director, ICAP Information Services, says: "ICAP has made significant inroads in establishing its data as the benchmark for valuation services and we are delighted to enter this relationship with Prism Valuation. Prism Valuation has considerable expertise with valuation solutions for OTC products and offers an independent service to effectively mark-to-market hard to value products."
Prism Valuation provides transparent valuations for complex OTC derivatives and structured products including interest rates, FX, inflation, equities, credit, commodities and hybrids. The Prism Valuation team emulates the valuation processes of a typical structured products trading desk by synthesizing the most important components required for valuation and analysis: up-to-date market data, appropriate valuation models and targeted calibration strategies.
Prism Valuation offers valuation transparency reports discussing the models and calibration strategies selected, as well as a breakdown of how the valuation for each deal was determined. Delivering this level of transparency creates an effective independent valuation process, thereby helping clients comply with current regulatory and auditing demands.
Greg Cripps, President and CEO of Prism Valuation, said, "ICAP has a strong reputation as the benchmark in many OTC markets and we look forward to expanding our offering of independent valuation services using ICAP's data. We will continue to work closely with ICAP to ensure we deliver to our customers the valuations and transparency they require to adapt to an increasingly regulated global business environment."
In addition to the data agreement, ICAP will become a minority shareholder in Prism Valuation. Financial terms of the investment were not disclosed.