SIX & Avaloq partner on new financial instrument valuation service

By Gloria Methri

SIX has launched the Independent Valuation Service for financial instruments, which was co-created in partnership with Avaloq. The initiative addresses international financial markets’ need for end-of-day product valuations from an independent source. This facilitates client reporting, risk management, and continuous benchmarking.

Product valuations are pivotal for asset and risk managers, custodians, and other financial institutions. They guide investment decisions, risk management, compliance, and reporting procedures. Drawing on trusted and unified data sources, these valuations offer simplification, stability and transparency amid complex investment processes and demanding regulatory requirements, especially for securitized derivatives. With easily available valuation data from a source such as SIX, these challenges can now be overcome.

The Independent Valuation Service for Structured Products available through the established CONNEXOR API offers an easily accessible and customizable solution: Users can subscribe or unsubscribe to instruments via ISIN requests based on their needs to obtain end-of-day valuations for non-listed structured products to trigger required downstream processes.

The API of the Independent Valuation Service integrates valuations and risk figures for structured products across financial markets, leveraging different pricing engines and real-time data analysis. Automated coverage checks ensure comprehensive data availability and cost transparency for each product available globally.

“SIX is proud to collaborate with industry leaders such as Avaloq in further developing the Independent Valuation Service as part of the CONNEXOR API,” said Francesco Marcon Fiastri, Head of Sales for Structured Products & CONNEXOR, SIX Swiss Exchange. “The launch of this service marks another important milestone for our CONNEXOR offering, a comprehensive solution around financial products data.”

“At Avaloq, we work closely with our ecosystem of partners to drive innovation in the financial industry,” said Andreas Diener, Head of Business Strategy and Offering Wealth Products at Avaloq. “Our partnership with SIX to develop the Independent Valuation Service demonstrates our commitment to providing cutting-edge solutions that simplify investment processes and enhance decision-making capabilities for our clients.”