Santander moves to SunGard FastVal for OTC derivatives

FastVal will help Santander Private Banking increase its operational efficiency when valuing its portfolios of non-liquid instruments. Its risk and compliance departments will use the solution to help meet the Consob requirements on the valuation of illiquid instruments and OTC derivatives.

FastVal will provide Santander Private Banking with an independent verification of valuations provided by its counterparties. The flexibility of the valuation service will help Santander Private Banking independently value non-liquid instruments, helping it to manage the increasing complexity of derivatives pricing. FastVal will also provide Santander Private Banking with transparency into its valuations, with the ability to drill down into data used in the valuation process to demonstrate how each specific valuation was determined.

Antonino Rao, IT manager at Santander Private Banking, said, "Our risk and compliance department needed a solution to help reduce operational risk and meet Consob regulatory requirements. We identified SunGard's FastVal as the most suitable pricing solution for our clients' non-liquid instruments. We selected the solution for its ease of implementation, coverage of OTC instruments and flexibility in valuing complex derivatives, which will help us remain adaptable to changes in the industry."

Gavin Lee, chief operating officer of SunGard's FastVal business unit, said, "With banks' increased focus on transparent and accurate risk management and reporting, we are seeing rising demand for independent pricing of OTC derivatives. FastVal will help Santander Private Banking gain greater clarity into the way it manages and calculates the risks associated with some of the most complex instruments in its portfolio."