External regulatory bodies and internal management are driving greater transparency in every capital market organization’s approach to valuing the assets and liabilities on its balance sheet.
For example, the International Financial Reporting Standards (IFRS) for accounting have placed tougher requirements on how complex derivatives are valued while EMIR, Solvency II, and Dodd-Frank provisions are all putting transparency at the heart of the valuation process. As such, independent price verification is now firmly in the spotlight.
Independent price verification (IPV) is the process of comparing internal prices and parameters used to mark positions to obtain position valuations to a corresponding set of independently verifiable external prices and parameters. It requires capital market organizations to access multiple evaluated price feeds from various external sources in order to analyze, compare and determine their own price.
Price validation is also needed to ensure that any prices arriving through a data vendor, broker, or evaluated pricing supplier are reasonable and complete. IPV substantiates the valuation of trading assets and liabilities on the balance sheet.
IPV with GoldenSource
The GoldenSource Independent Price Verification (IPV) solution offers a unique pricing preference and vendor hierarchy framework that enables capital market organizations to meet their regulatory, management, and audit requirements for independent price verification.
The solution combines the industry-leading Data Model and maintained Connections with client-configurable price validation rules, to provide a single point of control and a source of clean, validated prices for the front, middle, and back office.
Check price sources for data quality
Ensure that preferred prices are distributed to mission critical systems across the enterprise