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NAB Custondian services Selects Complex Derivatives Valuations Provider
Melbourne, AUSTRALIA – NAB Custodian Services (“NCS”), the leading securities services provider in Australia, today announced the appointment of Markit Group Limited (“Markit”) as provider of complex Over-The-Counter (“OTC”) derivatives valuations. Markit is the leading provider of independent data and portfolio valuations to the global financial markets.
Markit will provide NCS with an independent, post-trade calculation of the gross asset value of a portfolio of complex OTC derivative trades. Valuations will be provided on a daily basis for vanilla and exotic instruments, and a broad range of asset classes including credit, equity, currency, energy and interest rates.
John Treloar, General Manager at NAB Custodian Services, said: “We chose Markit in light of their reputation as the leading valuations provider for complex, illiquid instruments and for the transparency of their process since, unlike other model-driven services, Markit’s valuations are calibrated with a rich proprietary dataset drawn from the leading market makers. Markit enables us to deal with the most challenging new securities with ease.”
David Crammond, Managing Director of Markit Asia, stated: “We are delighted that NCS has decided to outsource their derivatives valuations to Markit, and regard the agreement as a key milestone for our valuations strategy in the Asia Pacific region. As investors extend the scope and complexity of their portfolios across the major derivative asset classes, it is gratifying to see growing numbers of custodians and fund administrators seek Markit’s expertise in this complex area.”
Tom McNerney, Managing Director of Valuations at Markit, commented: “There has been a noticeable increase over the last twelve months in the demand for reliable marks on OTC derivative assets. We expect this demand to grow as regulatory bodies continue to stress the importance of using independent third party valuations instead of counterparty marks, and investors put pressure on their investment managers to embrace best practice in risk management.”
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For further information, please contact:
NAB Custodian Services
Richard Coia
Head of Master Custody Sales
Tel: +61 3 8641 1633
Email: Richard.Coia@nab.com.au
Markit
Teresa Chick
Director, Corporate Communications
Tel: +44 20 7260 2094
Email: teresa.chick@markit.com
About NAB Custodian Services
NAB Custodian Services (NCS) is the leading securities services provider in Australia, with total assets under custody and administration in excess of $440 billion. NCS offers a comprehensive range of services including domestic and global custody, master custody, securities lending, fund administration and other related services. It has been providing settlement and custody services to domestic and international institutions covering all classes of securities, since 1950.
NCS is an operating division of the National Australia Bank Group of companies.
For more information, see www.nationalncs.com
About Markit
Markit Group Limited is the leading provider of independent data, portfolio valuations and OTC derivatives trade processing to the global financial and commodities markets. The company receives daily data contributions from over 75 dealing firms, and its services are used by almost 1,000 institutions to enhance trading operations, reduce risk and manage compliance.
Markit’s position in the derivatives markets has been acknowledged by the industry with numerous awards. In 2006, the company won Operations Management’s Vendor of the Year award (Trade Processing); Financial News’ Best Derivatives Data Solution and Best New Vendor Solution (Portfolio Valuations); Credit’s Best Operational Support Services Provider; Inside Market Data’s Reference Data Provider of the Year, and Company to Watch; Risk’s Trading Initiative of the Year (Credit Event Fixings); and Structured Finance International’s Editor’s Award for Advancing Structured Finance. In 2005, Markit received International Securitisation Report’s Editor’s Award for Innovation; International Financing Review’s Innovation of the Year (Credit Event Fixings); Financial News’ Best Derivatives Data Provider; and Operations Management’s Vendor of the Year award.