Thomson Reuters Due-Diligence Survey Cites Growing Need for Transparency From Pricing Vendors
(Thomson Reuters ONE) -
NEW YORK, June 26, 2012 - Thomson Reuters, the world's leading source of
intelligent information for businesses and professionals, today announced the
results of a survey into the concerns, best practices and importance of
proactive due diligence to buy-side firms, as they adjust to new regulatory
reporting requirements. According to the survey, nearly half (45.8%) of
respondents want more transparency into the underlying information about the
pricing vendors' offerings. Concern about pricing vendors' coverage of the
securities held came in second at 20.8%.
A clear evaluation process was cited as the top pricing vendor attribute by
31.3% of survey respondents, which includes operations staff, pricing managers,
treasurers and chief risk officers. Another key take away from the survey is
that clients want greater transparency to ensure that they have data of the
highest quality. When asked what the top three drivers are when assessing
valuation and reference data providers, 75% of respondents named data quality,
47.9% pointed to risk management and 29.2% said cost cutting.
"Pricing vendors need to do a better job proactively by reaching out to their
customers and pushing information to them rather than putting the onus on the
client to pull down information," says Jayme Fagas, Head of Evaluated Pricing,
at Thomson Reuters. "To address transparency, we at Thomson Reuters Evaluated
Pricing see a new information sharing dynamic developing as part of the
operational processes at our clients. No longer will a one-size-fits-all
approach work as firms today need to customize their processes for regulators
and customers in order to remain competitive."
The survey also found that greater cooperation amongst pricing vendors could
ease the due diligence burden especially as 20.8% of respondents have five or
more pricing vendors; 12.5% have four suppliers; 10.4% have three vendors;
14.6% have two vendors and 12.5% have a single vendor.
"The importance of conducting solid due diligence programs has taken on new
importance for buy-side firms given the call for more transparency into the data
and process behind valuations," said Gerry Buggy, global head of Enterprise
Content at Thomson Reuters. "As such, service providers should take an active
role in ensuring firms extract the most value out of due diligence meetings and
provide direction on how to most efficiently utilize the process."
Given the desire for more transparency, the typical participants in a due
diligence visit with a vendor-chief compliance officers (CCOs), operations
managers, pricing managers and treasurers-are likely to welcome more vendor
visits that bring clarity to the due diligence dialogue. Some may even start to
look more closely at checklists, as 33% of survey respondents say that they do
not yet have them.
For the CCOs and pricing departments that do put together checklists, they might
be open to getting relevant product information and guidance from their pricing
vendors. In addition to data quality, risk management and cost concerns, the
survey shows clients are also looking for ways to meet documentation support
requirements (25%).
The e-mail survey, Bridging the Transparency Gap, was conducted with Financial
Technologies Forum, LLC (FTF), a leading provider of executive-level events and
training, focused on trends and initiatives in securities trading and
operations. FFT's global subscriber-base of senior level securities
professionals from over 30 countries was used to inform the survey results.
To see the full results of the survey: Bridging the Transparency Gap, please
visit
http://forms.thomsonreuters.com/due_diligence_survey/
About Thomson Reuters
Thomson Reuters is the world's leading source of intelligent information for
businesses and professionals. We combine industry expertise with innovative
technology to deliver critical information to leading decision makers in the
financial and risk, legal, tax and accounting, intellectual property and science
and media markets, powered by the world's most trusted news organization. With
headquarters in New York and major operations in London and Eagan, Minnesota,
Thomson Reuters employs approximately 60,000 people and operates in over 100
countries. Thomson Reuters shares are listed on the Toronto and New York Stock
Exchanges. For more information, go to http://thomsonreuters.com.
CONTACT
Lemuel Brewster
Thomson Reuters
+1 646-223-5147
Lemuel.brewster(at)thomsonreuters.com
Press Release PDF:
http://hugin.info/142273/R/1622110/518419.pdf
This announcement is distributed by Thomson Reuters on behalf of
Thomson Reuters clients. The owner of this announcement warrants that:
(i) the releases contained herein are protected by copyright and
other applicable laws; and
(ii) they are solely responsible for the content, accuracy and
originality of the information contained therein.
Source: Thomson Reuters Corporation via Thomson Reuters ONE
[HUG#1622110]
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Datum: 26.06.2012 - 14:31 Uhr
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News-ID 160082
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