Analytics and Insights

Transfer Pricing

Calculate the cost of carry based on your firm-specific polices and allocate back to the appropriate business, desk, or trader
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Encourage Optimal Trading Decisions

Seamlessly improve business and firm-wide profitability

Transcend Transfer Pricing applies rules and rates to the sources and uses of enterprise-wide assets to help ensure business activity aligns with both business-specific and firm-wide policies. Seamlessly post pricing results as expenses to your firm’s books and records with timely, accurate, and auditable entries for historical analyses.

Additional Benefits of Transcend Transfer Pricing Include:

  • Encourage smarter trading and funding decisions with insights into secured and unsecured funding and liquidity costs across the enterprise
  • Ensure consistency and neutrality across the firm’s business lines by enforcing consistent funding policies
  • Incentivize the best use of collateral and funding through consistent and transparent allocation of funding costs
  • Eliminate internal arbitrage opportunities and achieve a better outcome for the firm by driving more informed pricing and trading decisions
  • Accurately calculate Prime cost of carry using the client – debit balances and net funding requirements

Notable Features

See How It Works
Unique Netting Logic
Create unique netting logic by business or desk to allocate bespoke credits or charges for each business area
Configurable Rules Engine
Configurable rules engine to support attribution of funding and liquidity charges
Flexible Rates Assignment
Ability to flexibly charge benchmark, security-specific or client-driven rates to business groups
PnL Calculations
Calculate accurate client and firm P&L daily or historically, and gain a complete picture of allocations and activity across the enterprise
Accurate Books and Records
Utilize transfer pricing output to apply total cost of carry to your firm’s books and records with timely, accurate, and auditable entries
Configurable Dashboards
View complete transfer pricing results on flexible, intuitive, user customizable dashboards that provide high level business views along with the most granular details

Align Trading Activities with Business Goals

Seamlessly apply policies and allocate the costs of various trading and funding activities to incentivize more efficient trading behaviors

Effective Transfer Pricing is critical for firms to encourage trading and client behaviors that align with enterprise-wide funding goals, risk appetite, and policies. However, because legacy technology ecosystems are typically complex, and disjointed, market participants lack the transparency required to enforce ideal funding strategies. As a result, simplistic or even untimely cost-of-carry allocations can lead to bad business decisions or instances of internal arbitrage.

Transcend Transfer Pricing utilizes a rules-based allocation engine to apply the costs and benefits of both secured and unsecured financing activities back to each business, desk, and trader. As a result, clients are able to effectively encourage optimal business activity. With industry-leading implementations, Transcend helps clients realize improvements to P&L and client service in months.

Ready to Enforce Business-Aligned Trading Behaviors with Effective Transfer Pricing?

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