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Volume 3. Issue Number 3 • Expanded data source support, standardized data coverage and maintained feed handlers, providing flexibility and broad coverage particularly for complex instruments • Graphical schemas to provide transparency for business users TAPMaster’s enhanced data validation functionality allows firms to determine the accuracy and completeness of financial data from a variety of sources. With version 4.0, business users can easily define data validation rules using English-language phrases and pick-lists in a browserbased interface. The new rules engine applies each rule and records exceptions which are then resolved prior to data extraction, processing or populating downstream systems. TAPMaster provides an intuitive graphical user interface combined with the straightforward upgrade, support and maintenance of a web-based solution. Phil Lynch, Asset Control’s president and chief executive officer, said, “Financial institutions are in need of easily implemented and robust solutions to help them acquire and manage critical information, and then make that information easily utilized by their various applications and reports. TAPMaster helps to make the process of sourcing, cleansing and distributing data simplified and transparent. With greater visualization, sophisticated matching and referencing techniques, TAPMaster allows firms to rapidly store, distribute and report on a broad range of data using a standardized product that provides greater consistency across the organization.” Markit, a financial information services provider, announced the introduction of a new pricing schedule for its Markit BOAT Data service. Markit BOAT provides a comprehensive view of the European over-the-counter (OTC) equity markets. The service gives users access to trade reports on an average of EUR20 billion of OTC trades in equities every day. This is equivalent to approximately 25% of the daily volumes traded on all European equity markets. Will Meldrum, Managing Director and Head of Equities Data at Markit, said: “Markit BOAT’s dataset is vital for market participants to gain a comprehensive view of the pan-European OTC equity markets. We have restructured our data packages to make the Markit BOAT data more easily available to a wider range of clients.” The new schedule includes nine regional data packages1 designed for those users who do not require a full pan-European licence, the only licence available for Markit BOAT Data prior this announcement. These new packages will become commercially available on 1 May 2009 in order to allow the market data vendors that redistribute Markit BOAT Data to implement the necessary changes. The new pricing schedule will also include the introduction of a reduced scaling fee for Markit BOAT’s pan-European data licence based on the number of registered users within a company. Markit BOAT has also introduced new services that give users an end-of-day aggregated view of validated trades reported on the Markit BOAT platform. The new end-of-day files will address the market's needs for accurate historical trade data and correct measurement of trading volumes offexchange. Sophia Kandylaki, Director and Product Manager of Markit BOAT, said: “We recognise the importance of validated historical trade reports for fine tuning algorithms and this is the reason for the introduction of Markit BOAT’s end-of-day service. We expect the service will also appeal to risk managers who need official OTC volume data to use as an input into their liquidity tests.” Numerix, the leading independent provider of advanced analytics for the derivative and structured products markets, and CMA, the credit information specialist, announced the publication of a new industry report discussing the importance of consistent pricing policies for the accurate valuation of complex derivatives and structured products. The paper outlines the process of implementing an “enterprise pricing policy” as a consistent, repeatable methodology for valuing complex financial instruments and creating an audit trail from the front to back offices. As a result, financial institutions can address the main challenge for today: developing the necessary internal support for complex products. The credit crunch has revealed the market inefficiencies and forced institutions to evaluate their participation in complex markets in terms of the valuation, model validation and overall risk management involved with structuring and managing portfolios. While organizations will continue to invest in software to develop better pricing strategies, there are several key requirements to meet: standards between trading desks, which support different asset classes; model validation for new products; and trade capture from the front to back office. 5
Volume 3. Issue Number 3 “Financial institutions understand the crucial value of transparent pricing policies, but the obstacle is effectively implementing a consistent policy throughout the organization to foster transparency,” said Steven R. O’Hanlon, President and Chief Operating Officer at Numerix. “Organizations must use industry-standard analytics and proven models to create a foundation for an enterprise pricing policy. It is the only way institutions can maneuver the current market volatility and remain confident in their portfolios.” The paper also advises on the importance of high-quality data for a robust enterprise pricing policy. It is critical for financial institutions to ensure that data used internally is the same data seen by counterparties, risk managers and administrators, as well as auditors. This will eliminate inconsistencies in reporting and moreover, enable better back-testing strategies that are critical to confirm accuracy before bringing instruments into the market. To enable this transparency, valuation providers need to ensure that services are agile enough to allow fund managers to provide accurate and timely valuations regardless of the complexity of the financial instrument. “The quality of data being used within an organization dictates its ability to create accurate and timely valuations, particularly with complex derivatives that are inherently difficult to value. If there is poor data flowing into a valuation system, there will be inaccurate data going out into the market,” said Laurent Paulhac, CEO of CMA. “In partnership with Numerix, we have a better understanding of how clients use valuation systems in conjunction with our data and ultimately, help investors remain competitive in a challenging market.” SunGard’s Asset Arena has launched a Client Portal module, an online reporting and client communication tool available with its Asset Arena solution suite. The Asset Arena Client Portal module is an interactive, multi-lingual Web-based portal that gives asset managers and fund administrators access to customizable reports and analysis on topics such as performance measurement and compliance. Asset Arena’s Client Portal has been developed using SunGard’s Infinity*. It has a scalable service oriented architecture that facilitates integration with third party applications. Its open-source framework will also allow customers to work directly with SunGard on shared technical and functional enhancements. Key functionality offered by Asset Arena’s Client Portal includes: customizable dashboards; predefined templates for on-demand reports; online access to all reports generated by front-office systems such as Asset Arena Investment Accounting; and secure remote access to software platform services. Asset Arena’s Client Portal is currently integrated with Asset Arena’s Compliance and Investment Accounting solutions. Peter Delano, research area director for Securities & Investments at TowerGroup, commented: “Clients' rising expectations, competition for global assets and an economic environment that drives attention to cost all point to the growing importance of client reporting. Shifting from basic client reporting to leading-edge status requires a commitment to improve business process and IT governance, as well as technology in data management and portal interactivity.” Doug Morgan, president of SunGard’s institutional asset management business, commented: “SunGard’s Asset Arena Client Portal is an important addition to the Asset Arena offering. It provides a fast, cost-effective route to sophisticated management reporting. With it, SunGard can help asset managers and fund administrators increase their operational efficiency and deliver value-added services to their own clients and partners.” Markit, a financial information services company, and RiskVal Financial Solutions, a provider of fixed-income trading and risk management systems, announced the integration of Markit’s industry standard pricing and reference data into RiskVal’s Credit-X trading platform. The Credit-X trading platform has integrated a broad array of Markit’s products and services, including Markit RED *1+ for CDS and LCDS; Markit Quotes *2+, Markit Intraday *3+; Markit Indices *4+; and Markit’s CDS and LCDS spread services [5]. Markit is a financial information services company that offers independent pricing, valuations and trade processing services to help market participants manage risk, improve operational efficiency and meet regulatory requirements. Markit's alliance with RiskVal has created a trading platform that delivers improved risk analysis tools including real time profit and loss management, more accurate data entry and superior credit event management. Credit-X is available as a remotely managed Software as a Service (SaaS) or as an enterprise solution. Armins Rusis, Executive Vice President and Co-Head of Fixed Income at Markit, said: "The combination of Markit's industry standard data products and services with RiskVal's sophisticated analytics delivers a consistent view of risk and return to the front, middle and back offices that truly empowers buyside firms to act on accurate and timely internal and external information.” 6
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