ValueLink’s ADEPT reduces Operational Risk

10 November 2008

ADEPT automates the processing and validation of OTC counterparty data and fund data.

ValueLink is delighted to confirm the full integration of their ADEPT (Automated Data Extraction Processing Tool) development into both their PriceValidation and CounterpartyCollection services. ADEPT is a bespoke solution to the myriad of data sets that are required in the market data arena but are only provided as an embedded document attached to an e mail or from a website.

ADEPT automates the whole process from receipt of data to data upload, together with exception notification, as detailed below:

• Data source definition

• Schedule definition (data collected or received)

• Identification and definition of data sets required

• Data validation configuration

• Exception handling notification

• Data upload to ValueLink database

ValueLink’s ADEPT solution provides the technology to hugely reduce operational and reputational risk, increase process efficiency, eliminate manual processing and provide scalability. The final implementation of ADEPT is the conclusion of over two years of development of services predominantly established to satisfy clients counterparty collection requirements. During this time ValueLink has built up specialist expertise in this area.

Trevor Beach, Operations Director at ValueLink, commented “The release of ADEPT is the culmination of ValueLink’s determination to automate the collection and processing of counterparty data. This automation enables us to provide our clients with a cost effective solution to control their operational risk. This is a crucial step forward in a function where many market participants rely on data manually collected, either in house or from a data vendor, and often in areas where cheap data input is recognised but there is little industry knowledge. The alternative is the manual data collection and input by relatively expensive fund accounting teams. These practices lack scalability, give little confidence for data accuracy and represent serious operational risk. Our solution removes the manual involvement, is fully scalable and controls the operational risk. This is a complex area and I believe ADEPT provides ValueLink with the tool to automate a laborious process, to completely control these risks and to allow clients to concentrate on their core business.”

Sitting on top of ADEPT are the typical ValueLink service elements of data validation, dedicated client administration and a wide array of reporting. The data validation can be tailored to meet individual client demands. The dedicated administration includes chasing counterparties for any delayed, erroneous or missing data. The reporting element has proven particularly useful in satisfying the complex requirements for the administration of illiquid OTC derivative data. This detailed reporting supplements the demand for greater transparency and independence.

ValueLink has invested heavily in ADEPT and see this as the mechanism that provides the industry with an answer to the ever increasing operational concerns centring on the problem of efficient data collection for illiquid instruments.

Trevor Beach challenged any organisations that are experiencing difficulties with manual pricing and especially counterparty collection data to contact ValueLink. “We believe that our technology solutions and the use of ADEPT provide genuine solutions to current problems. We would welcome the opportunity to prove the huge benefits that we can provide”.

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