Northern Trust Helps Clients Monitor Counterparty Exposure for OTC Derivatives

Jan 14, 2010, 10:23 ET from Northern Trust

CHICAGO, Jan. 14 /PRNewswire-FirstCall/ -- Northern Trust announced today it has expanded the scope of its securities exposure reporting for clients to include counterparties for over-the-counter (OTC) derivatives contracts, in addition to more traditional investments such as equity and fixed-income holdings. The incorporation of OTC derivative counterparties on the "Security Exposure Analysis" available on Passport, Northern Trust's multifaceted web portal, makes it easier for clients to gather and aggregate complex information across multiple investments and accounts.

"Market volatility and shocks to the financial system have prompted institutional investors to take a broader, deeper view of exposures for their risk management and compliance oversight programs," said Lenora Kelley, Product Manager for Northern Trust's compliance products. "This tool gives our clients the ability to gain a quick understanding of the impact on a fund or plan from exposure to a single entity – both market exposure from physical assets and counterparty exposure from OTC derivatives transactions – when market events occur. It is a significant development in our continuing line of innovations aimed at helping our clients understand and monitor their risks."

Clients around the world can enter a stock ticker, security identifier or issuer name on their Passport dashboard and immediately receive total holdings in any one entity across asset types and accounts. The tool easily combines market exposure from both equity and fixed income holdings with other sources of exposure such as counterparty exposure from OTC derivatives. In addition to easier access to information through Security Exposure Analysis, Northern Trust has enhanced the detail available in client reports.  This includes additional issuer exposure information such as gross and net notional values, and exposure breakout by asset category.

"In today's fast paced environment, clients need easy access to answers, not just more data," said Paul d'Ouville, head of Northern Trust's C&IS Global Product Management Group. "Northern Trust continuously seeks ways to provide clients the information they need, when and where they want it, so they can focus on making informed decisions rather than aggregating data."

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').

SOURCE Northern Trust



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