HAMILTON, Bermuda (HedgeWorld.com)–Bank of Bermuda will be using Reech FastVal in its hedge fund administration business, valuing and handling the risk of over-the-counter derivatives contracts.
The software will be used to provide independent valuation or validation of Bank of Bermuda’s administration client’s OTC contracts. According to officials at Sungard, traditional manual methods of valuing OTC derivative portfolios are often inefficient, and the Reech FastVal software lets fund administrators provide independent, accurate and speedy computations of fair value and first-order risk measurements for hedge fund portfolios.
The SunGard system supports a range of OTC instrument types across equity, fixed-income, foreign exchange and credit asset classes. Bank of Bermuda chose the ASP model of the software, depending on Reech’s grid computing on Linux servers that execute three billion computation steps in 80 seconds to calculate the value of complex derivatives.
“Generating timely and independent valuations for the 2,800 funds under our administration globally requires a reliable, comprehensive service,” said Chris Wilcockson, head of client services at global fund services division at Bank of Bermuda, in a statement. “Demonstrating independence is also important for investor and regulatory confidence.”