Markit Adds Structured Products to Pricing Service

Financial information services firm Markit added structured products to the range of instruments covered by its portfolio valuations service. It marks the latest effort to expand pricing analytics. “We have extended our Portfolio Valuations service to include structured products in response to client demand,” said Kevin Borrett, managing director of portfolio valuations at Markit. “This is an area where our clients and their custodians hold significant positions and have historically relied on a single source of counterparty marks.” Markit now provides valuations for a wide range of equity, currency and interest rate structured products including equity structured notes and swaps, short- and medium-term currency structured notes and swaps. Markit also offers pricing analytics on single-currency interest rate structured notes and swaps, inflation options and Securities Industry and Financial Markets Association (SIFMA) swaps. Markit also rovides valuations for hybrid equity/currency structured notes and swaps, as well as quanto rates exotics including quanto constant-maturity swaps (CMS) caps and floors and quanto CMS spread options. “We are pleased to be able to offer our clients reliable, independent marks and greater transparency for a number of structured products including equity and currency structured notes and swaps,” Borrett said. “We will continue to expand our modeling and pricing capabilities with a view to offering full coverage of all derivative trades our customers may hold.” Write to Diana Golobay.

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