|Bank of Bermuda Selects SunGard's Reech FastVal for Independent Portfolio Valuation of OTC Derivatives|
Thursday September 4, 4:30 pm ET
Reech FastVal to Support Global OTC Business via an ASP Delivery Framework
NEW YORK--(BUSINESS WIRE)--Sept. 4, 2003-- SunGard Trading and Risk Systems, an operating group of SunGard (NYSE: SDS), today announced that Bank of Bermuda (NASDAQ: BBDA; BSX: BOB) has selected Reech FastVal for its Global Fund Services division ("GFS"), which provides fund administration services to the alternative funds industry. Reech FastVal will be used to provide independent valuation or validation of Bank of Bermuda GFS' clients' OTC contracts, supporting the complete range of OTC instrument types across equity, fixed income, FX and credit asset classes. Bank of Bermuda GFS has chosen Reech to be part of its alliance partner program because of its ability to deliver services in the areas of valuation and risk.
The fund administration industry increasingly confronts pressure for independent valuation from regulators and investors who seek transparency in pricing and processes. As volumes and product complexity in the alternative investment industry grows, the ability to provide independent valuations becomes both more challenging and more important. Traditional manual methods of valuing OTC derivative portfolios have become too time-consuming and inefficient. Reech FastVal enables fund administrators to provide independent, accurate and speedy computations of the fair value and first order 'Greeks' of portfolios containing any product from cash equities to complex exotics.
Chris Wilcockson, head of client services, Bank of Bermuda GFS, said, "Generating timely and independent valuations for the 2,800 funds under our administration globally requires a reliable, comprehensive service. Demonstrating independence is also important for investor and regulatory confidence. Reech FastVal is unique because it conducts independent pricing for a wide range of instruments and has the flexibility to easily add new instrument types. The ASP model best suited our needs, as it enables costs to be scaled to our growth. Its full service capability also helps us reduce operating risk and improve efficiencies while providing full process independence for our clients."
Christophe Reech, president of SunGard's Reech operating unit, said, "Correctly valuing OTC derivative portfolios can be difficult, requiring substantial infrastructure investment. The need for independent valuations is driven both by investors, and increasingly regulators, seeking to reduce the risks of loss caused by incorrect valuations. Accurate valuations require a system to describe and book the instruments, and the flexibility to add new products and tools to combine complex analytics with the market data for valuations. Reech FastVal provides all of the above in a secure, fully resilient ASP-based environment. Reech FastVal also offers unmatched processing efficiency using grid computing on Linux servers, which can execute three billion computational steps in 80 seconds to calculate the value of complex derivatives."