Market conformity checks are validations of whether a trade has been executed at a fair value. This fair value should reflect the objective market conditions at the time of exchange. The reconciliation of market prices requires maximum accuracy of input market data and the utilization of robust validation methodologies.
AVS-Valuation uses a wide range of data providers to ensure clean and transparent validation of the trade. Market conformity checks are especially relevant for more complex or illiquid securities. If there are no observable market prices, the trade can be validated against model valuations or against a liquid benchmark (for example in the case of ABS and CDOs).
An article of AVS-Valuation GmbH, Frankfurt am Main. For inquiries, please contact us at email@example.com.
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