Goodbye ambiguity! Thomson Reuters introduces new service for hard to value OTC derivatives

Thomson Reuters Corps (NYSE:TRI) today announced the launch of Thomson Reuters Pricing Service Plus (TRPS Plus), a new DataScope capability for structured notes and hard-to-value over-the-counter (OTC) derivatives. TRPS Plus offers significant transparency into the evaluated price, methodologies and market data associated with the price. TRPS Plus also provides important risk analysis such as Value-at-Risk (VaR), Credit Valuation Adjustment (CVA) and Greeks.

Global regulators enforcing rules such as Dodd-Frank and European Market Infrastructure Regulation (EMIR) are devoting a great deal of attention to illiquid and complex instruments, with a particular focus on derivatives and structured products. Highly transparent valuations are required.

By using TRPS Plus, customers get a tailor-made transparent evaluated price with complete access to cashflow descriptions, market data inputs, numerical methods and model assumptions to help address transparency and regulatory requirements.

“Financial institutions are struggling to meet valuation and risk management requirements for their exotic derivatives and complex structured products,” said Jayme Fagas, Global Head of Valuations & Transparency for Thomson Reuters Pricing and Reference Services.

“With TRPS Plus, we help to tackle these challenges by providing not only the price but also the traceable details of the valuation. Customers now have access to risk calculations associated with the instrument such as VaR, CVA and Greeks allowing them clear line of sight into the instrument and its value” concluded Jayme Fagas.

TRPS Plus is accessible via Thomson Reuters DataScope Select, the strategic global data delivery platform for non-streaming content.

TRPS Plus is an addition to Thomson Reuters Pricing Service (TRPS), a global solution that covers over 2.5 million fixed income securities, derivatives and loans, priced daily, including: collateralized loan obligations (CLOs), collateralized debt obligations (CDOs), asset-backed securities (ABS), commercial mortgage-backed securities (CMBS), credit default swaps (CDS), Corporates, US Municipals, and more. Prices are delivered throughout the day or at market closing times around the world depending on the asset class, with supporting commentary to provide insight on the day’s events.

With TRPS Plus in place, DataScope Select now covers more than 650 structured notes and derivatives. Combined with the legacy-Pricing Partners financial library, TRPS Plus effectively allows DataScope Select to deliver transparent pricing on all standard or non-standard derivatives. Valuation and risk reports are delivered intra-day or end-of-day according to customers’ requirements.

For the official announcement from Thomson Reuters, click here.

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Goodbye ambiguity! Thomson Reuters introduces new service for hard to value OTC derivatives

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