ICAP To Enhance Valuation Service
Meredith Lepore
Published 07/28/2009
ICAP, an interdealer broker and provider of post trade services, is going to be adding more risk analysis and strategies for different financial instruments to its new valuation service, Fair Value Insight. ICAP launched the service this week with FINCAD, a provider of financial analytics. Fair Value will be used by corporate treasuries, banks and asset management firms for risk management, regulatory compliance and valuations for interest rates, FX, commodities, OTC derivatives and debt securities.
Bob Park, president and ceo of FINCAD and Lawrence Leuzzi, managing director of ICAP information services, said they were going to add valuations for option strategies and more credit exposure and counterparty risk management, due to client demand. "Active risk management through ongoing measurement and up-to-date knowledge of derivative cash flows for liquidity and capital management is now a business necessity," said Leuzzi.
Fair Value is a web-based derivatives valuation platform. After a client has entered his portfolio data into the program, it provides frequent derivative position email updates by applying FINCAD’s financial analytics and ICAP’s market data. FINCAD and ICAP both have a lot more data and analysis to be used, said Leuzzi and Park. "The beauty of Fair Value is that customers can add and extend coverage and ask for new valuation models," said Park.
Both Park and Leuzzi said they were confident that Fair Value would not only bring on bank, hedge fund and asset manager clients but also more partnerships with vendor or trading service providers. Fair Value already has a party interested in a strategic alliance, they said. "Being able to implement consistent valuation is a lot of work, so why wouldn’t a vendor partner with us where they would have instant access and wouldn’t have to build it," said Leuzzi.
