TP ICAP’s data and analytics brand Parameta Solutions, has launched its new FX Evaluated Pricing (FEP) solution. It focuses on businesses who deal with FX instruments helping them make more accurate and timely decisions regarding price discovery, portfolio valuation, risk management and regulatory compliance.
The new solution will deliver observable pricing for G10 currency pairs, and cover linear instruments as well as FX Options at launch. The coverage will later be extended to additional currency pairs in the future.
The FEP solution is based on Parameta’s data model, where indicative marks generated by TP ICAP’s broking are enriched with trade data and market quotes coming from trading across the firm.
The processing logic of the price creation tool is based on expected dispersion and quality control measures. Rigorous and market leading data quality processes are applied, where global operations staff monitor and maintain the output through the use of a combination of automated and manual control processes with the goal of creating a transparent and reliable dataset.
Irina Orlova, Senior Product Manager at Parameta Solutions, said:
The new FEP solution follows the launch of the Bond Evaluated Pricing in June 2020, and is built using the same principles: data quality, consistency, and transparency. As the leading provider of OTC market data globally, we are uniquely placed to compile, analyse and present complex derivatives data – even in less liquid markets. Highly detailed transparency enables clients to access observable pricing in the FX markets, which is critical for price discovery and valuation of portfolios. The input granularity is useful for traders and portfolio managers and will allow them to make more confident trading and risk related decisions. The transparency fields help clients meet reporting obligations for regulations such as IFRS 13, ASC 820, Prudential Valuation, FRTB, and relevant local directives.
TP ICAP aims to establish mid pricing for every security hourly, with bid and ask prices provided where possible and in that takes into account all available market information. Clients can take advantage of the observable pricing, timely delivery and choice on how to access the data, be it through a direct connection or the cloud.