Bloomberg Professional Service executives today announced a new valuation service for over-the-counter (OTC) derivatives, designed to bring the transparency long sought by the financial marketplace, as well as government and regulatory agencies.
The launch comes as U.S. federal legislators consider increasing regulations on OTC derivatives.
The new Bloomberg Derivatives Valuation Service, which is an extension of Bloomberg Valuation Services (BVAL), provides comprehensive end-of-day valuations and risk measurements for a full range of OTC derivatives and structured products. The Bloomberg Derivatives Valuation Service offers pricing for derivatives and structured notes of all levels of complexity across foreign exchange, interest rate, inflation, credit, equity and commodity markets, using high-quality data and market-standard models. The solution is fully integrated with the additional analysis tools on the Bloomberg Professional® Service for enhanced transparency and flexibility.
"Bloomberg is uniquely positioned to help the financial community better manage its derivatives positions. Our new OTC derivatives valuations provide unparalleled independence, expertise and transparency so critical to investment and risk professionals, regulators and investors," said Tom Secunda, founding partner of Bloomberg L.P. and head of Bloomberg's Financial Products and Services.
Bloomberg's Derivatives Valuation Service uses market-standard quantitative models and a portfolio of data that taps advanced validation and cleansing techniques to ensure accuracy and consistency.
Users can access their evaluated positions via end-of-day data files and through a dedicated portfolio manager on the Bloomberg Professional Service, which provides unmatched analytic, data, news and information. This additional delivery mechanism allows customers to analyze the terms of the deals as well as the data and models behind the prices. The Bloomberg Derivatives Valuation Service is staffed by experienced financial engineers, who are available 24 hours a day, seven days a week, to provide details into the models and methods used.
"The increasing sophistication of the global marketplace, combined with increasing regulation, means that financial professionals, government agencies and regulatory bodies must have pricing tools that are accurate, reliable and defendable, so they can generate accurate portfolio and risk measures," said Jean-Paul Zammitt, global head of core product development for Bloomberg Financial Products and Services.
Andrea Danese, global head of data solutions for BVAL, said: "BVAL sets the standard for providing the highest quality in market data, the most robust controls and strongest levels of confidence from our customers.
Our mission is to deliver the tools that clients need to properly value their positions for trading, analytical and risk needs."
In addition to the new Derivatives Valuation Service, BVAL provides end-of-day valuations for over six million publicly available securities including bonds, mortgages and equities.