Global custodian Bank of New York says it has expanded its independent valuation service for OTC derivatives to include European swaptions, foreign exchange options and OTC equity options.
The bank already provides valuation services for interest rate swaps and credit default swaps.
Bank of New York clients are offered daily valuations of their global OTC derivative portfolios as part of the account information available to them through INFORM, the bank’s Internet platform.
“As greater numbers of institutional investors include the use of derivatives in their investment strategies, the demand for independent pricing has never been greater,” says Richard P. Stanley, executive vice president and head of Global Investor Services Product Management and Accounting Services at The Bank of New York.
“This expansion of our service greatly enhances our ability to report on OTC derivatives valuations, which improves our clients’ capacity to monitor and assess their holdings as well as understand and manage their risks.”
Stanley stressed that the bank’s derivatives offerings are a “core competency that will grow in sophistication as such clients increasingly utilize derivatives globally.”
In addition to independent valuations of derivatives, the Bank of New York recently established a derivatives product team led by Ahmad Sharif, managing director within Global Investor Services, which is charged with servicing derivatives used by hedge funds and institutional investors.