Press Release
Principia System incorporates Markit credit default swap data for comprehensive credit derivatives lifecycle management
Jersey City, New Jersey – March 23, 2005 - Principia Partners LLC, a leading technology provider of comprehensive front-to-back office solutions for managing highly complex, structured financial assets, liabilities and derivatives, announced today that it has integrated credit derivatives data from Markit Group Ltd. Markit is the world’s first integrated daily pricing service for global credit derivatives, cash credit instruments and syndicated loan pricing. The incorporation of Markit’s credit default swap data is a significant enhancement to Principia’s automated credit derivatives trading and operations platform. Markit provides daily credit default swap composite and contributor level data on over 2,600 individual entities and tiers of debt, gathered from over 45 contributing organizations used to construct more than 13,000 credit curves by entity, tier, currency and documentation clause.
The Principia System’s flexible analytic framework has enabled credit derivatives users to price and risk manage products using a variety of available market data. “Integration with Markit’s data enables us to deliver a more robust, turnkey credit derivatives platform to a wider user base, helping us to provide a comprehensive solution to users who require third-party contributed data sources,” states Dr. Douglas Long, Product Marketing Director at Principia Partners. Principia serves a wide range of customers in the insurance, fund management, banking and structured finance markets with its leading trade lifecycle management solutions for a broad host of financial instruments, ranging from vanilla to highly structured.
"Markit’s broad asset coverage and reference data is a good fit with the Principia lifecycle management solutions,” said Mark Hunt, Director of Product Development at Markit. “ As customers increase their exposure to credit derivatives they will benefit from our partnership through enhanced STP, reduced operational costs and an improved regulatory environment and risk profile.”
The integration of Markit’s data further enhances Principia’s commitment to delivering key market data for the broad array of asset classes that the system manages, which include credit derivatives, cash securities, ABS/MBS, and FX. The ability to provide accurate and consistent data is a major component of the company’s mission to provide a comprehensive end-to-end solution that can flexibly serve multiple market segments.
About Markit
Markit is the leading industry source for asset valuation data
and services supporting independent price verification and risk management
in global financial and energy markets. Founded in 2001, the company
is an independent enterprise with which the world’s leading
financial institutions and energy traders work strategically to create
price transparency. Today, Markit enjoys the sponsorship of 13 financial
institutions who manage assets in excess of $10 trillion, and data
contribution relationships with over 45 dealing firms. Markit has
designed, launched and acquired over 20 financial data services,
which are now used by over 300 institutions globally. Areas of product
expertise and service include an independent valuation perspective
on credit default swaps, syndicated loans and OTC derivatives (credit,
equity, FX, rates, energy, power, metals and structured products),
as well as dividend forecasting and index and ETF management. For
more information about Markit, see www.markit.com
About Principia Partners
Principia Partners is the leading software provider for the management and administration of structured finance and credit investment operations. Some of the largest investors in structured credit ABS, MBS and CDOs use Principia SFP as the operational backbone for their portfolios. It enables them to consistently manage, analyze and report on these investments and their associated liabilities and hedges. On a single platform, clients can perform the full range of portfolio management, cashflow and exposure analysis, compliance, risk reporting and accounting activities demanded by their business. Operational inefficiencies associated with using multiple spreadsheets and undedicated systems are reduced by integrating and streamlining these activities on a unified platform that addresses challenges unique to the management of structured finance operations.
Principia SFP’s powerful analytics and ability to interface with, combine and consistently apply deal, cashflow and performance data from the leading industry providers empowers managers to know and understand their investments. On an ongoing basis, users have the control to track, analyze and evaluate risk exposures at the deal, tranche or collateral level and gain a consolidated view of risk across any number of portfolios. The fully auditable operational environment provides the flexibility needed to adapt to changing management, regulatory and accounting mandates and ensure transparency is consistently delivered to investors at every stage of the portfolio lifecycle.
For 15 years, the platform has been used by global commercial banks, insurance companies and investment managers, as well as supporting off-balance sheet operations such as ABCP conduits.
Principia Partners is headquartered in New York, with a European office in the City of London and a technology center in Conshohocken, Pennsylvania.
For press information contact:
Ben Jarrold
Tel: + 44 (0) 20 7618 1370
Email: Jarrold@ppllc.com