Markit Creates Global Valuations Platform

Markit announced plans to launch the first global, multi-bank, cross-asset client valuations platform called Markit Valuations Manager. The platform will fuse electronic delivery of dealer OTC derivative and consensus cash valuations with Markit’s independent valuations into a single platform. The motivation behind the new product comes from recent regulatory and accounting changes that have increased the importance of independent valuation sources for funds, Markit said. David Lefferts, managing director at Markit, will lead the initiative and six global investment banks have agreed to support the launch of the platform including Citigroup, Credit Suisse, Goldman Sachs, JPMorgan, Merrill Lynch and UBS. These banks will provide Markit with end-of-day and end-of-month client valuations for OTC derivative instruments and cash securities. Markit will then create a composite of dealer marks for cash securities and counterparty present values for OTC derivative positions, which clients can compare with Markit’s independent valuations. The platform will launch in 2H08 with coverage of bonds and derivatives. Markit expects to expand the platform to include more banks and additional cash and derivative asset classes including ABS and MBS.