Basis Point Group, LLC, leading investment operations performance consultants, have released the first monthly index measure of operations performance for the US Government Securities market. The publication of Basis Point Groupâs (BPG) groundbreaking new index in OpRisk & Compliance magazine, will for the first time, allow firms to compare their internal operational performance against an established standard. To create the index, BPG applied their patent pending OPERAÂ® methodology to input from the twenty-three primary government bond dealers, providing the first quantitative measure for this market. The index provides a rolling ten year measure of the operational performance of the US Government Securities market. OpRisk & Compliance magazine will publish the Index monthly, with the inaugural printing appearing in their April Issue. The index is designed to allow firms to compare their internal operations performance against the performance of this âgold-standardâ market.
âOperations Risk is impossible to completely avoid,â explains BPG Partner Fred Sommers, âThe primary benefit of an operations measurement index is that it provides a comprehensive operations metric that offers simple, critical operational information from available data, allowing for a consistent framework for measurement and attribution. This easily understood index helps summarize complex environments into a single measure where everybody is familiar with the underlying source of the data.â
BPG has developed a straightforward, understandable, measure of on-going process quality and risk. The index shows that the unrealized risk in this market varies from eight to eight hundred fifty basis points during the previous ten years, with changes often happening in short periods of time.
âWe are working closely with a number of clients to refine this standard and help them realize the maximum benefits from OPERAÂ® measurement approach and will host a series of roundtable discussions related to the index and operations performance measurement in the near future,â says BPG Managing Partner Bob Fawls, âBasis Point Group is nearing release of a monthly asset backed securities operations performance index in the near future, followed by mortgage backed and exchange traded bond indices.â Interested firms are encouraged to contact BPG directly.