Derivative Partners Research, a subsidiary of Derivative Partners specialising in risk management and independent valuation, data feeds, IT services and visualisation tools for structured products, will become the calculation agent for the Swiss Structured Products Association (SSPA) starting in February.
The SSPA's president, Daniel Sandmeier, said that Derivative Partners will be in charge of the entire process of calculation of the "Value at Risk" (VaR), the financial industry's most widely used means of estimating an investment's market risk, for structured products traded in Switzerland.
The calculation of the risk figure will be performed daily after market close and will be available before the following day's stock market opening.
"As a passive member of the association, we look forward to playing a more active role by calculating the risk figure," said Andreas Kropf, managing director of Derivative Partners Research.
In July 2009 the SSPA launched a new system of VaR-based risk figures, which was recalculated each day after the market's close to increase the transparency of structured products listed in Switzerland.
The SSPA risk figure and the corresponding risk rating have been used since by data vendors, issuers, portals and other market participants.