Information and analysis provider Bloomberg Professional Services has extended its Bloomberg Valuation Service (BVAL) to cover over-the-counter (OTC) derivatives. The launch comes as US and European regulators evaluate the use of OTC derivatives, over concerns that the market lacks transparency and creates unmonitored risks.
The Bloomberg Derivatives Valuation Service, an extension of BVAL, provides end-of-day valuations and risk measurements for a range of OTC derivatives and structured products. It offers pricing for derivatives and structured notes across foreign exchange, interest rate, inflation credit, equity, and commodity markets using data and market standard quantitative models.
Users can access their evaluated positions via end-of-day data files and through a portfolio management tool on the Bloomberg Professional Service. The additional delivery mechanism allows customers to analyse terms of their deals, as well as the data and models behind the prices.
Bloomberg says that its Derivatives Valuation Service is staffed by financial engineers who can provide information on the models and methods used, 24 hours a day, seven days a week.
The system can also be integrated with analysis tools on the Bloomberg Professional Service.
In the US the Dodd-Frank reform bill, expected to be passed by US Congress shortly, has stipulated that data relating to OTC derivatives trades should be collected and published to improve market transparency and assist regulatory supervision.