| Founded in 1997, the Totem service provides the major market makers in OTC derivatives with definitive consensus market prices. |
|
| Product summary: |
|
| A monthly sell-side service that provides market makers in OTC derivatives with consensus based prices to check their trading book valuations. The service encompasses the equity, interest rate, currency, commodity, credit, property and bond markets, providing matrices of vanilla prices and a wide selection of exotic products. |
|
| Key benefits: |
|
|
| Data quality - Markit Totem employs a unique set of processes and techniques to ensure the consensus is a true reflection of the market. These controls are rigorously applied, and any data points that fail the checks are rejected |
|
|
| Authoritative - Accepted by auditors and regulators worldwide, the Markit Totem Service enables institutions to ensure that they are valuing their derivatives positions accurately
|
|
|
| Regulatory environment - Markit Totem works closely with its contributing banks to ensure the valuations data satisfies the ever increasing regulatory and audit requirements for book valuations and day one P&L
|
|
|
| Market expertise - Experienced market professionals provide vital support on pricing issues to product controllers and risk managers |
|
|
| Monthly accounts sign-off - Rigorous independent checking of book valuations is a core regulatory requirement. The Totem service specifically fulfils this need
|
|
|
| Key functions: |
|
|
| Equity - The service covers around 100 indices and 1,000 stocks with maturities out as far as 30 years, and strike ranges from 20% to 300%. Exotic derivatives coverage includes index, stock and quanto correlations, variance swaps as well as more complex structures |
|
|
| Interest rates - Swaptions and Caps are covered on major currencies and a growing number of emerging markets (20 markets in total), with coverage extending to 70 year and 5 delta. Bermudans, CMS Spread Options, Inflation, Quantos and Structured Derivatives also covered across a range of currencies
|
|
|
| Currency - The service covers ATM volatilities and 10 and 25 delta skew on over 125 currency pairs for maturities out to 30y, with a further 250 pairs covered for ATMs only. Barriers, FVAs and other exotic products are also covered |
|
|
| Commodity - Forward and/or option prices are provided for over 400 oil, gas, power, coal, freight, emissions, agricultural products and metals. Valuations on a variety of exotic products are also provided |
|
|
| Structured credit - Provides a ‘hands-on’ review on correlation and volatility products. These include bespoke and index tranches, index tranchlets, FTDs, CDO Squared and Credit Options. Recovery Locks, Quanto CDS and a CDS quality analysis service are also provided |
|
|
| Property, Funds, Bonds and Bond Indices - Property swaps, mutual funds and hedge fund indices, options on major treasury bonds and bond indices |
|
|
.gif) |
|
