New York â Reuters (LSE: RTR.L, NASDAQ: RTRSY) today announced that it has added the Fair Value Pricing Model from Investment Technology Group, Inc. (NYSE:ITG), a leading provider of technology based equity trading services and transaction analytics, to Reuters DataScope Pricing and Reference Dataâs evaluated pricing service.
The ITG Fair Value Model provides mutual funds with international holdings, a tool to assist in valuations of foreign securities. The addition of this product to Reuters DataScope Pricing and Reference Data provides premium service clients with its timely and valuable evaluated prices, plus the actual ITG adjustment coefficients, and the combined fair value calculation.
Fair value pricing is recommended by the Securities and Exchange Commission (SEC) to help mutual funds ensure that security prices reflect significant events occurring after prices are determined but before net asset value (NAV) is calculated.
Gary Barr, Product Business Owner for Reuters DataScope Pricing and Reference Data, said: âUsing Reuters renowned fixed income evaluated prices along with ITGâs Fair Value Model adjustment coefficients provides our clients with robust, timely, and trusted fair value pricing information.â
Ian Domowitz, Managing Director, ITG and CEO, ITG Solutions Network, said: âThe combination of ITGâs Fair Value Model data with Reuters DataScope Pricing and Reference Data will help subscribing firms address both regulatory compliance and market timing issues by providing an easily accessible way to establish fair value prices.â
When utilized by a mutual fund, ITGâs Fair Value Model reduces the opportunities for market timing by generating price adjustments that better approximate the fair value of individual holdings at the time of valuation. The ITG Fair Value Model calculates fair value adjustment factors by 4:30 p.m. ET each trading day.
The ITG Fair Value Model uses relevant information captured between the time of foreign market closures and the US market close to create fair value adjustment coefficients for over 49,000 stocks in 49 markets outside the U.S. Reuters will apply the adjustment factor to the Reuters Closing price to generate the Reuters - ITG Fair Value Pricing Service.