WINDSOR, Conn., June 25, 2013 (GLOBE NEWSWIRE) -- SS&C Technologies Holdings, Inc. (Nasdaq:SSNC), a global provider of financial services software and software-enabled services, today announced Lighthouse Partners has expanded its relationship with SS&C GlobeOp to include Credit Value Adjustment (CVA) calculations for the firm's managed accounts program.
CVA is an adjustment to the value of OTC derivatives contracts that reflects the risk of counterparty defaults. The complexity of CVA calculations combined with a strong market focus on managing counterparty credit risk led Lighthouse to outsource its CVA calculations to SS&C GlobeOp. Under the terms of the agreement, SS&C GlobeOp will perform CVA calculations and report to Lighthouse on a monthly basis. The methodology applied by SS&C GlobeOp utilizes market-observable credit spreads and is consistent with ASC Topic 820, US GAAP and IFRS 13 fair value guidelines. Netting agreements and collateralization are factored into the CVA calculations.
"We consider SS&C GlobeOp to be a strategic partner to us. The addition of the CVA calculations provided by SS&C GlobeOp is an important enhancement to the production efficiencies on our managed account program," said Robert Swan, Chief Operating Officer, Lighthouse Partners. "These services ensure the timeliness of applying a fair value to all positions in accordance with FASB accounting standards. Lighthouse is at the forefront of implementing industry leading risk mitigation initiatives."
"CVA calculation has become an essential measurement for risk management and financial reporting, and can be a challenging process," said Eric Reichenberg, Managing Director of Valuation Services, SS&C GlobeOp. "We enable our clients to become early adopters of industry best practices and overcome these challenges. We are pleased to extend the scope of mission-critical services we deliver to Lighthouse."
About Lighthouse Partners
Lighthouse Partners is a global investment manager dedicated to providing innovative solutions to hedge fund investors. In addition to an extensive suite of fund offerings, Lighthouse has developed a proprietary managed account program which has been recognized as an industry leader and helps investors capture daily security level transparency, gain better asset control, aggregate broad risk exposures and achieve greater investment flexibility for its hedge fund allocations. With over 100 managed accounts, Lighthouse has built one of the largest managed account programs, which is supported by an operational, technological, legal and investment infrastructure. Combining our experience of being a long-term active hedge fund investor with the benefits of a managed account program has also allowed Lighthouse the ability to extend a custom suite of services to institutional investors. Lighthouse currently manages assets of approximately $7 billion. For more information, please visit www.lighthousepartners.com
About SS&C Technologies
SS&C is a global provider of investment and financial software-enabled services and software focused exclusively on the global financial services industry. Founded in 1986, SS&C has its headquarters in Windsor, Connecticut and offices around the world. 5,500 financial services organizations, from the world's largest to local financial services organizations, manage and account for their investments using SS&C's products and services. These clients in the aggregate manage over $26 trillion in assets.
Additional information about SS&C (Nasdaq:SSNC) is available at www.ssctech.com.