New measure provides enhanced transparency into TRPS evaluated fixed income prices, helps customers meet increasingly stringent valuation and reporting rules
Thomson Reuters today announced the launch of the Thomson Reuters Pricing Service Evaluation Score (“TRPS Score”), a measure of the level of incorporated market color in any given TRPS evaluated price. The TRPS Score incorporates known information associated with an investment instrument’s evaluation, ranging from the level of available market data to the individual attributes of the issue, based on a measurement scale of 1 to 10, with 10 being the maximum score.
U.S. regulatory and international accounting rules such as Dodd-Frank, IFRS 9 and IFRS 13 are increasingly emphasizing the importance of pricing transparency. Market participants need to know how the evaluated prices they use to value their portfolios and measure risk are calculated. Combined with in-depth access to pricing inputs and methodologies already offered by TRPS, the TRPS Score provides enhanced insight into fair value measurement, helping customers defend TRPS evaluated prices and address stringent valuation and reporting requirements with greater confidence.
“Regulatory and disclosure reporting rules now place as much emphasis on how the evaluated price is derived as they do on the price itself. In order to stay compliant, customers need greater visibility into their pricing evaluations,” said Jayme Fagas, global head of Valuations and Transparency for Thomson Reuters. “The TRPS Score builds on the transparency we already deliver to customers in the form of price recipes, relevant data and direct access to our evaluators for price challenges. By providing a stronger sense of how robust the market data underlying a price is, the TRPS Score reinforces customer confidence in our evaluated prices, and helps them stay one step ahead in complying with stringent valuation and reporting rules.”
TRPS is an independent, global evaluated pricing service that covers over 2.6 million fixed income securities and derivatives. Coverage spans all major financial markets and prices are available at multiple times daily. Evaluated prices are delivered via the Thomson Reuters DataScope Select data delivery platform.
Thomson Reuters is the world’s leading source of news and information for professional markets. Our customers rely on us to deliver the intelligence, technology and expertise they need to find trusted answers. The business has operated in more than 100 countries for more than 100 years. Thomson Reuters shares are listed on the Toronto and New York Stock Exchanges.