Today, financial institutions continue to encounter critical challenges associated with accurate and timely consensus pricing. What appears to be missing is the inclusion of an Evidential Price (EvP). Without this key piece of data, firms experience difficulties with decision-making, increased regulatory risk, and excess capital reserves.
An EvP is an external authoritative source that guides the independent price verification process by incorporating observable data directly into the consensus computation. This methodology ensures that the final consensus produces a fair value that aligns with the market.
When it comes to challenges, current consensus pricing solutions only incorporate observable data points submitted by market participants. Without an authoritative external source, such as the EvP, institutions have little insights or comparative analytics into whether their consensus price is accurate and aligns with other firms.
ClearConsensus™, a transparent high-fidelity consensus network, uniquely provides richer consensus price calculations through Parameta Solutions’ Evidential Price (EvP) and PeerNova’s Cuneiform® technology platform. The EvP enhances consensus price outcomes as dealer submissions are directly compared against an independent, authoritative, and observable market data source. The EvP data combines real-time indicative pricing from two leading sources with trades and orders sourced from the world’s largest OTC market intermediary.
With more observable data points and a trusted EvP, firms can expect a more accurate consensus price. Broker data, used in all valuation waterfalls, is built into the consensus and published. By including broker data, the EvP can provide transparent and observable pricing for instruments globally.
As a result, ClearConsensus ensures optimized capital allocation, and improved position justification and auditability.
For more information, please visit ClearConsensus to contact us, or request a no-commitment demo with a member of Parameta Solutions and PeerNova today.
