For OTC derivatives, the pricing (still) isn’t right – Risk.net

The 2008 G20 summit initiated regulatory changes aimed at stabilising the financial sector. Although firms are still implementing them, there is an opportunity to consider their impact on the prices and values of financial instruments.

Examining the interplay between pricing models can help determine the market prices of transactions owing to supply and demand; and the valuation models for financial instruments – those applied in front-office systems, risk management, performance measurement

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