Reuters has announced the launch of a pricing service that delivers bespoke valuations for derivatives and complex securities, Reuters DataScope Derivatives Pricing Service, as part of its
Reuters has announced the launch of a pricing service that delivers bespoke valuations for derivatives and complex securities, Reuters DataScope Derivatives Pricing Service, as part of its strategy to speed up the process of valuing complex securities.
Using the service customers can request a price for bespoke transactions, with transparent Reuters pricing and methodology behind each valuation. The service complements Reuters’ DataScope Select, which provides prices for instruments that have a broader market adoption, and means the data provider now provides valuations for more than 1.1 million hard-to-value financial instruments.
Reuters says the need for an independent source of derivatives pricing has grown in tandem with the search for above-average investment gains in particularly volatile market conditions. The importance of transparency, both in pricing and methodology, accuracy and speed in valuations has become even greater priority following the write-downs related to US sub-prime mortgage debt exposure. The firm says clients also increasingly need to understand how valuations are calculated.
‘Many of our clients trade financial instruments for which establishing the correct market price can be difficult,’ says Tim Rice, global head of pricing and reference data. ‘This service allows them to tap into the independence and integrity of Reuters to give a custom-made guide to the value of securities they hold.
‘The speed and flexibility available via Reuters DataScope Derivatives Pricing Service, coupled with the depth and breadth of Reuters coverage, is key for our clients operating in today’s volatile and heavily regulated market.’
Reuters provides information tailored for professionals in the financial services, media and corporate markets as well as direct to individuals and has 17,500 staff in 94 countries, including 2,400 editorial staff in 196 bureaux serving 131 countries.
Reuters DataScope Derivatives Pricing service works in partnership with Reuters DataScope Select. The instruments available through the service include currency swaps, currency forwards and futures, caps and floors, swaptions, interest rate forwards and futures, bond futures, credit default swaps on asset-backed securities, equity warrants, credit default swaps, interest rate swaps and over the counter equity options.
