Parameta Solutions, a provider of OTC indicative and trade data, and Numerix, an OTC analytics and derivatives pricing company, have formed a new partnership to develop automated, independent, fair valuations of OTC derivatives to market participants.

With the ability to use Parameta’s market OTC data alongside Numerix’s analytical capabilities, the firms say the partnership is aiming to provide "a cost efficient, differentiated offering to a high growth sector". The introduction of FRTB meanwhile, has reinforced the need for banks to have access to high quality data in order to accurately mark their OTC positions.
 
The two firms say they are working together to develop a solution to provide a more effective way of valuing OTC derivatives. The collaboration follows the Bank for International Settlements recent data showing that the notional value of outstanding OTC derivatives rose to a record high of $632 billion last year.