Transparent pricing to enable more confident trading and risk-related decision-making
Parameta Solutions, flagship brand of TP ICAP’s Data & Analytics division, has announced its new FX Evaluated Pricing (FEP) solution. The solution empowers businesses who deal with FX instruments to make more accurate and timely decisions regarding price discovery, portfolio valuation, risk management and regulatory compliance. The FEP solution will initially deliver observable pricing for G10 currency pairs, and cover linear instruments as well as FX Options. Parameta Solutions plans to extend coverage to additional currency pairs in the future.
FEP is built on Parameta Solutions’ proprietary data model where indicative marks generated by broking partners at TP ICAP are enriched with trade data and market quotes coming from trading across the firm. The price creation process follows a strict logic based on expected dispersion and quality control measures. The data is subject to rigorous and market leading data quality processes, where global operations staff monitor and maintain the output using a combination of automated and manual control processes with the ultimate goal of creating a transparent and reliable dataset.
“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. ” says Irina Orlova, Senior Product Manager at Parameta Solutions.
TP ICAP takes into account all available market information to establish mid pricing for every security hourly, with bid and ask prices provided where possible. Clients benefit from observable pricing, timely delivery and choice on how to access the data, be it through a direct connection or the cloud.
