The breadth, quality and transparency of Thomson Reuters Pricing Service (TRPS) has led to victory in the Buy-Side Technology Awards 2016, run by Waters Technology.
TRPS was awarded ‘Best Pricing / Valuation Service’ by a panel comprised of buy-side technology experts.
Entries were judged on breadth of product coverage, contributing pricing partners, methodology and specificity to the buy-side.
Recently acquired REDI Technologies also won the award for ‘Best Buy-Side EMS’– a testament to its comprehensive offering and the strength of its execution client base on the buy-side.
The acquisition was completed in January and facilitates the delivery of a powerful cross-asset trade management suite that enables customers to move seamlessly through the trade life cycle.
Commenting on the win for TRPS, Jayme Fagas, Global Head of Valuations and Transparency said: “This is a fantastic achievement.
“The win reflects our commitment to providing the global buy-side community with the extensive, high-quality, cross-asset data they need to accurately value their portfolios, mitigate risk and comply with global regulation.
“It also serves as excellent endorsement of the work our team has done – and is continuing to do – to build TRPS.”
The Awards recognize excellence amongst technologies and vendors that service the global asset management community.
They were established over a decade ago and span 32 categories, including trading, execution, OMS, EMS, market surveillance, client reporting and more.
Hitting a home run
In recent years, a tightening of the regulatory noose has led to increased demand from buy-side participants for independent, transparent pricing and valuations data.
Front, middle and back-office professionals require evaluated pricing for core investment, risk and compliance functions, including fund NAV calculations, performance measurement, customer reporting and risk management.
The pursuit of greater transparency has further led regulatory and accounting bodies to hone in on valuation sources.
Dodd-Frank, IFRS 13 and IFRS 9 now place as much emphasis on how evaluated prices are derived (the underlying methodology, data inputs and assumptions) as the end prices themselves, placing even greater pressure on buy-side entities.
Fagas expands: “Validation and defensibility are driving demand from the buy-side for transparent pricing and valuations data.
“TRPS not only offers transparency for all evaluations, including pricing methodologies, recipes and corresponding market color, but also direct access to our team of evaluators should customers wish to submit a price challenge or require additional clarification.
“Transparency is critical as it gives customers the ability to defend and justify the evaluated prices they use to third-party bodies, including regulators, auditors and customers.”
The substantial quality assurance checks in place throughout the evaluations process and breadth of TRPS coverage were also noted by the judges.
The TRPS team, comprising approximately 175 fixed income experts and 4,700 data professionals price over 2.6 million fixed income, OTC and derivative instruments daily.
The evaluations process also encompasses strict validation procedures, including checks that review unchanged prices and daily tolerance breaks, to ensure accurate, timely evaluations.
Watch this space
Over the next year, TRPS will continue to grow its coverage and solutions.
Last year, the business undertook a myriad of engagements to help customers stay one step ahead of regulatory change.
In October 2016, a specialized intraday pricing solution was launched targeted at money market instruments.
Mutual fund managers can now access 24/5 updated evaluated pricing for public and other non-public short-term money market instruments, enabling them to meet demands for intraday net asset value (NAV) calculations, increased investor disclosure and transparency that emerged as part of SEC money market fund reform.
Transparency was – and will remain – at the heart of many of the new enhancements.
In November 2016, the TRPS Evaluation Score was launched to provide customers with additional level of transparency into TRPS evaluated prices.
In regards to what’s next in the pipeline, Jayme Fagas said, ‘2017 is going to be an exciting year for TRPS.
We’re currently making substantial investments in the municipals space to price harder-to-value instruments and capitalize on new market opportunity.
Enhanced derivative pricing will also be at the center of expansion efforts in 2017.’
Exciting developments lie ahead. Watch this space.