11:30 AM
Kerry Massaro
Kerry Massaro

Pricing and Valuation Services: The Search for Transparency

Regulatory demand for increased transparency is driving firms to revisit and enhance pricing and valuation processes, often using vendor technology.

The 2008 financial crisis has made clear to firms the importance of fully understanding the ramifications of the pricing and valuation function, especially as it relates to portfolio market, liquidity and counterparty risks. In response to this recognition, regulatory, accounting and market-driven factors relating to increased transparency will compel the pricing and valuation industry to revisit - and in many cases, enhance - their existing pricing and valuation processes.

As such, Aite Group estimates that the pricing and valuation services industry's revenues will grow from US$2.1 billion in 2009 to US$2.9 billion by year-end 2012. Response time to price challenge resolution and asset type/instrument coverage are the major determinants to pricing and valuation vendor selection today. Third-party solutions provide specialized strengths and varied functionalities, and can contribute meaningfully to the pricing and valuation process of many firms.

"Greater scrutiny by interested parties, coupled with changing regulations, accounting standards and changing dealer landscapes, has made the pricing and valuation process a high-visibility, high-importance business activity for years to come," says John Jay, senior analyst with Aite Group and co-author of this report, in a company realese. "This is no idle exercise, given that shoddy prices or unverifiable valuations may have a dramatic negative impact on a business's regulatory capital, financing, compliance, risk management and fees."

A new report from Aite Group examines the importance of pricing and valuation of financial assets following the financial crisis of 2008. The report presents pricing and valuation approaches and the regulatory, accounting and operational factors that affect them. Within this context, the report analyzes the pricing and valuation services market, profiling five services and highlighting three.

The report reviews and analyzes pricing and valuation technology offered by Interactive Data Corp, OTC Valuations, Statpro, SunGard and SuperDerivatives. The report also highlights Thomson Reuters, Bloomberg and Markit.

Comment  | 
Print  | 
More Insights
More Commentary
A Wild Ride Comes to an End
Covering the financial services technology space for the past 15 years has been a thrilling ride with many ups as downs.
The End of an Era: Farewell to an Icon
After more than two decades of writing for Wall Street & Technology, I am leaving the media brand. It's time to reflect on our mutual history and the road ahead.
Beyond Bitcoin: Why Counterparty Has Won Support From Overstock's Chairman
The combined excitement over the currency and the Blockchain has kept the market capitalization above $4 billion for more than a year. This has attracted both imitators and innovators.
Asset Managers Set Sights on Defragmenting Back-Office Data
Defragmenting back-office data and technology will be a top focus for asset managers in 2015.
4 Mobile Security Predictions for 2015
As we look ahead, mobility is the perfect breeding ground for attacks in 2015.
Register for Wall Street & Technology Newsletters
White Papers
Current Issue
Wall Street & Technology - Elite 8, October 2014
The in-depth profiles of this year's Elite 8 honorees focus on leadership, talent recruitment, big data, analytics, mobile, and more.
Exclusive: Inside the GETCO Execution Services Trading Floor
Exclusive: Inside the GETCO Execution Services Trading Floor
Advanced Trading takes you on an exclusive tour of the New York trading floor of GETCO Execution Services, the solutions arm of GETCO.