Industry Updates

HedgeServ expands its OTC derivative pricing capabilities with SuperDerivatives Market Data

Monday, July 12, 2010

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Opalesque Industry Update – HedgeServ, a fund administrator recognized in the industry for providing ground-breaking solutions to hedge funds and funds of hedge funds, today announced it has expanded its ability to offer real-time valuation of illiquid and complex over-the-counter (OTC) derivatives using market data from SuperDerivatives (SD), the derivatives benchmark in FX, interest rates, commodities, energy, equity and credit.

“By incorporating SD into our core technology platform, we have enhanced our ability to provide on-demand valuation directly to clients’ desktops,” said Jim Kelly, chairman of HedgeServ. “Our administrative solutions provide intra-day trade processing, valuation and risk for complex transactions. With SD’s volatility surfaces, we have increased our capacity to price and value our clients’ diverse portfolios in a transparent T+0 environment.”

In the aftermath of the financial crisis it has become imperative that hedge fund administrators provide transparent and accurate prices for hard-to-value instruments. The joint HedgeServ-SD solution enables on-demand portfolio pricing and expands the coverage and quality of HedgeServ’s portfolio valuation capabilities. SD’s global infrastructure combines the required elements of data sourcing, data cleansing, quantitative modeling and market calibration to facilitate the automation and controls required to deliver consistent net asset value (NAV) verifications.

“Selecting a pricing partner is something we did not take lightly,” said Mr. Kelly. “Our analysis showed that SD produced market data levels for volatility surfaces that were representative of tradable market conditions.”

Chris Zingo, senior vice president of the Americas at SD, said, “As a company, we focus on providing extremely wide asset coverage, underpinned by an unparalleled level of accuracy in our derivatives market data. This definitely sets us apart from other data providers in the industry. Due to the current market conditions and investment climate, we see a high demand for our data within the hedge fund community. Clearly HedgeServ is very favorably positioned to respond to those demands.”

HedgeServ is redefining hedge fund administration with a shared technology platform that breaks the cycle of costly data duplication while strengthening controls and giving clients real-time access to their data. HedgeServ client service teams are the most experienced in the industry at consistently delivering timely and accurate information to both hedge fund managers and investors. HedgeServ supports all structures, strategies and domiciles of hedge funds, funds of hedge funds, managed accounts, private equity funds and endowment investment platforms from offices in Dublin, Grand Cayman and New York City. www.hedgeserv.com

SuperDerivatives (SD) is transforming the world of derivatives by introducing transparency to all major traded derivative classes including foreign currency, interest rates, equities, commodities, energy and credit. Providing prices that reflect the interdealer market has led the company’s web-based, market-calibrated solutions to be widely accepted as the benchmark for derivatives pricing. www.sdgm.com.

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