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Bloomberg Launches Derivatives Valuation Service To Bring Transparency

Provides end-of-day valuations and risk measurements for a full range of OTC derivatives and structured products.

Bloomberg Professional Service has rolled out a new valuation service for over-the-counter (OTC) derivatives designed to bring the transparency long sought by the financial market participants, as well as government regulatory agencies.

The launch comes at the same time that U.S. federal regulators are considering increasing regulations on OTC derivatives through the financial reform bill that is being finalized in the House and Senate.

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 company stated in its release today.

The new 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,” commented Tom Secunda, founding partner of Bloomberg L.P. and head of Bloomberg’s Financial Products and Services, in the release.

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, according to the release.

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 extensive 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. Experienced financial engineers, who are available 24 hours a day, seven days a week, are staffing the Bloomberg Derivatives Valuation Service to provide details into the models and methods used.

“Our mission is to deliver the tools that clients need to properly value their positions for trading, analytical and risk needs,” stated Andrea Danese, global head of data solutions for BVAL, in the release.

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.

Ivy is Editor-at-Large for Advanced Trading and Wall Street & Technology. Ivy is responsible for writing in-depth feature articles, daily blogs and news articles with a focus on automated trading in the capital markets. As an industry expert, Ivy has reported on a myriad ... View Full Bio

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