Northern Trust has upgraded its platform for processing over-the-counter 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.

"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 should 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 transparent reporting.

Specifically focused on hedge funds, investment managers and institutions requiring daily independent pricing for structured products, these capabilities are delivered to clients through Northern Trust's integrated derivatives processing platform. In addition, Numerix financial engineers work alongside the derivative pricing teams at Northern Trust operation centres throughout the globe to help provide clients with access to the highest level of valuation support.