Valuation ServicesPortfolio Valuations

Portfolio Valuations is an industry validated, fully hosted service that provides independent valuations and risk measures for vanilla and exotic derivatives, private equity investments, structured notes and cash products. These valuations are distributed via a single platform alongside clearing prices and counterparty marks.

Customers

  • Agencies
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  • Alternative Investment Funds
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  • Asset managers
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  • Auditors
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  • Banks
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  • Corporates
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  • Custodians
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  • Fund administrators
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  • Government authorities
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  • Hedge funds
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  • Insurers
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  • Mutual funds
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  • Pension funds
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  • Regulators
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  • Sovereign wealth funds
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  • UCITS funds

Statistics

  • 6.4m+independent valuations per month
  • 403k+OTC and cash positions valued
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Product summary

Markit Portfolio Valuations has been serving the buyside since 2005, starting with vanilla derivative valuations and then expanding across asset classes and underlying markets. Today, we cover an extensive range of financial instruments including complex and illiquid products.

Customers choose our valuation and risk analysis services for the accuracy and transparency of our results, the comprehensive coverage we provide through a single interface, and our expert and timely support across all regions.

We deliver cost-effective solutions for portfolios of any size and composition, and can offer reliable sameday turnaround to meet customer needs.

Customers typically use Markit Portfolio Valuations directly, or to provide value-added services to their clients, for the following:

  • Net Asset Value (NAV) calculations

  • Collateral/margin verification and dispute resolution

  • Independent price verification or internal benchmarking

  • Automation of manual or ad-hoc processes, such as in-house spreadsheet valuations

  • Stress testing and scenario analysis for risk management and regulatory compliance

  • Outsourcing the valuation or risk measurement function

  • Collection and aggregation of counterparty marks

  • Sourcing centrally cleared prices across all active CCPs

  • Hedge accounting and financial reporting

Coverage

  • Interest rates

    Swaps, caps/floors, swaptions, inflation swaps and exotic structures

  • FX

    Spot, forwards, NDFs, FVAs, swaps, options and exotic structures across major and emerging market currencies

  • Equities

    Options, indices, dividend, variance, volatility and correlation swaps and other exotic structures

  • Commodities

    Forwards, swaps, and options on physical and financial commodities

  • Credit

    CDS, TRS, indices, options, synthetic CDOs and CLNs

  • Structured products

    Most types of interest rate, credit, equity, FX and hybrid structures, including TARNs, autocallables and PRDCs

  • Centrally cleared derivatives

    Price redistribution agreements with ICE, CME, LCH, JSCC and other central counterparties

  • Cash products

    Evaluated prices for bonds and consensus pricing for loans and structured finance including ABS/MBS products

Key Benefits

  • Accuracy

    Leverages Markit’s consensus data from more than 70 banks for calibration of in-house valuation models to market levels, supplemented with data from exchanges, clearing houses and interdealer brokers

  • Dedicated support

    Global team of experienced valuation analysts, product specialists and financial engineers available 24/5, providing rapid resolutions to queries, confirmation requests, and price challenges

  • Reliability

    SSAE 16 and ISAE 3402 Type II audited valuation processes, including market data capture and cleansing, trade loading, valuation tolerance checks, and delivery of results, with any alerts investigated by our analysts, including verification of unexpected P&L movements, before results released to clients

  • Transparency

    Complete view of valuation inputs and underlying market data available via the web front-end, along with fully documented methodologies, models, and valuation processes

  • Flexibility

    Customisable data snap times, report frequencies, formats, and content, as well as fee structures to fit customer valuation and business requirements

  • Independence

    Market data sourced independently, with industry standard pricing models built in-house. Further, Markit is not involved in the structuring, sale, trading or management of derivatives or securities, allowing it to provide unbiased valuations

Case Studies

    • Northern Trust – Outsourced valuations


      Northern Trust has been using Markit as an outsourced OTC derivative valuations provider for more than five years, seamlessly integrating Markit’s valuations into its core asset servicing platform.

       

      Markit Portfolio Valuations serves as an important source for Northern Trust’s NAV and collateral calculations across a broad range of OTC derivatives. The accuracy of the valuations, as well as a high level of support, has resulted in fewer price challenges and improved operational efficiency.

       

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    Connectivity

      • MarkitSERV has integrated realtime trade data feeds into Portfolio Valuations


        Customers can now benefit from the integration of trade data and derivatives valuations to support regulatory reporting and risk management. The connectivity between MarkitSERV and Portfolio Valuations allows clients to create a more streamlined, error-free and realtime process for valuing derivatives. It eliminates the need to build a separate trade feed to the valuations platform while reducing costs, onboarding times and valuation discrepancies.

         

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