IHS Markit Launches OTC Derivatives Valuation Data for FX

IHS Markit announced this Monday that its (OTC) derivatives valuation data is now available to financial institutions for best execution compliance. The time-stamped data will assist firms in monitoring intraday and historic transaction costs and other OTC derivatives.
As global regulations clamp down on transparency regarding financial market transactions, the has launched this offering, to help meet the need for standardised valuation procedures and reporting documentation for complex trades in OTC markets.

According to the statement, this valuation data will be available for a range of markets – interest rate, equity, forex, credit, commodity and structured product OTC derivatives.

Laura Misher
Source: LinkedIn
Commenting on the launch, Laura Misher, managing director of derivatives data and valuation services at IHS Markit said: “Financial institutions need to validate and contextualize the effectiveness, quality and timeliness of each transaction.
“In terms of compliance, OTC trades are the most difficult to manage due to their complexity and the availability of quality market data. As a leading source of market data on OTC derivatives with significant breadth of inputs, we are uniquely positioned to help firms address these challenges by providing transparent valuations and inputs that can be used for transaction cost analysis.”
IHS Markit Data Provides OTC Trade Slippage Calculations
To provide this data to financial institutions, the company is leveraging its Portfolio Valuations data and methodology. This allows it to calculate OTC trade slippage, which firms can use to confirm execution quality and generate reports on trading effectiveness.
“As the regulatory frameworks have expanded from equities to bonds and OTC assets, the requirements for data and analytics have also become increasingly complex,” noted Michael Richter, executive director of trading analytics at IHS Markit.
“With this in mind, we are committed to enabling firms to reduce the cost and burden of compliance through our comprehensive suite of best execution solutions,” he added.

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