CHICAGO, Jan. 5 /PRNewswire-FirstCall/ -- Northern Trust announced today that it has enhanced its platform for processing over-the-counter (OTC) derivatives to provide daily independent pricing for structured products and other bespoke instruments. The expanded capabilities, including transparency reporting for OTC instrument types, were developed through a strategic alliance with Numerix, a leading derivative and structured products valuation and analytics company.
"The derivatives industry, regulators, investors and our clients globally are demanding increasing independence and transparency for OTC derivative valuations," said Peter Cherecwich, chief operating officer for Corporate & Institutional Services at Northern Trust. "Derivatives perform critical functions for investment managers and institutional investors, and our global alliance with Numerix brings a range of valuation capabilities and depth of knowledge to help our clients exercise greater control over valuation of these assets while meeting the standard for transparency demanded by sophisticated investors."
The enhancements allow Northern Trust to independently price exotic OTC derivative instruments and provide clients access to the mathematical model, calibration techniques and market data components of the pricing process to enable fully transparent reporting.
Specifically focused on hedge funds, investment managers and institutions requiring daily independent pricing for structured products, these capabilities are delivered to clients globally through Northern Trust's integrated derivatives processing platform. In addition, Numerix financial engineers work alongside the derivative pricing teams at Northern Trust operation centers throughout the globe to provide clients with access to the highest level of valuation support.
Numerix is a leading independent analytics provider for derivatives and structured products and currently performs more than two million valuations per year. Numerix pricing models and software solutions are utilized by global issuing institutions and are embedded in the world's most prominent trading and risk platforms.
"We are excited about this relationship with one of the top financial services firms," said Steve O'Hanlon, CEO/President at Numerix. "Through this alliance, Northern Trust will offer its clients the benefits of independent valuations, innovative transparency reporting and access to expertise that is unrivalled in the industry."
About Northern Trust
Northern Trust Corporation (Nasdaq: NTRS) is a leading provider of investment management, asset and fund administration, banking solutions and fiduciary services for corporations, institutions and affluent individuals worldwide. Northern Trust, a financial holding company based in Chicago, has offices in 18 U.S. states and 16 international locations in North America, Europe, the Middle East and the Asia-Pacific region. As of September 30, 2009, Northern Trust had assets under custody of US$3.6 trillion, and assets under investment management of US$611 billion. For 120 years, Northern Trust has earned distinction as an industry leader in combining exceptional service and expertise with innovative products and technology. For more information, visit www.northerntrust.com.
Northern Trust operates in Australia as a foreign authorised deposit-taking institution (foreign ADI) and is regulated by the Australian Prudential Regulation Authority.
Northern Trust in Hong Kong is a securities company regulated by the Securities and Futures Commission.
Northern Trust in Singapore is a foreign wholesale bank regulated by the Monetary Authority of Singapore.
Northern Trust operates in China as a Representative Office and is regulated by the China Banking Regulatory Commission.
Northern Trust (Guernsey) Limited, Northern Trust Fiduciary Services (Guernsey) Limited, Northern Trust Fiduciary Company (Guernsey) Limited and Northern Trust International Fund Administration Services (Guernsey) Limited are licensed by the Guernsey Financial Services Commission.
Northern Trust International Fund Administrators (Jersey) Limited and Northern Trust Fiduciary Services (Jersey) Limited are regulated by the Jersey Financial Services Commission.
Northern Trust Global Services is authorised and regulated in the Netherlands by De Nederlandsche Bank.
Northern Trust Global Services Limited Luxembourg Branch is authorised and regulated by the Financial Services Authority and in Luxembourg by the Commission de Surveillance du Secteur Financier (CSSF) and Northern Trust Luxembourg Management Company S.A. is regulated by the CSSF.
Northern Trust Global Services Limited - Abu Dhabi. Representative Office, Licence number 13/238/2008.
Where Northern Trust's UK entities undertake regulated business, they are authorised and regulated in the United Kingdom by the Financial Services Authority.
Northern Trust International Fund Administration Services (Ireland) Limited and Northern Trust Fiduciary Services (Ireland) Limited are regulated by the Financial Regulator.
The Northern Trust Company operates in Canada as The Northern Trust Company, Canada Branch which is an authorized foreign bank branch under the Bank Act (Canada). Trustee related services in Canada are provided by the wholly owned subsidiary The Northern Trust Company, Canada, an authorized trust company under the Trust & Loans Companies Act (Canada). Deposits with The Northern Trust Company and its affiliates and subsidiaries are not insured by the Canada Deposit Insurance Corporation.
Northern Trust Global Services Ltd (UK) Sweden Filial is a BCD Passported branch of Northern Trust Global Services Ltd a firm authorised and regulated in the UK by the Financial Services Authority ('FSA').
Numerix is the award winning, leading independent analytics institution providing cross-asset solutions for structuring, pre-trade price discovery, trade capture, valuation and portfolio management of derivatives and structured products.
Since its inception in 1996, more than 375 financial institutions and 45 strategic partners across 25 countries rely on Numerix analytics for speed and accuracy in valuing and managing the most sophisticated financial instruments. With offices in New York, London, Tokyo, Hong Kong, Singapore and Dubai, Numerix brings together unparalleled expertise across all asset classes and engineering disciplines. For more information, please visit www.numerix.com.
SOURCE Northern Trust Corporation