Survey Shows Lower Market-Based Trigger Levels

Earlier last week, Interactive Data released the results of its 2013 Fair Value Practices Survey, which included responses from 178 market participants, representing 127 firms.

The highlights of this year’s results showed a general increase in firms using lower market-based trigger levels, which indicated more frequent fair value practices. Approximately 40 percent of the firms responded that they are using a 0 bps trigger compared to 36 percent of the respondents in the 2011 fair value survey.

Additionally, about 76 percent of firms replied that they are using a confidence threshold at the security-level to support fair value procedures.

Of the participants who stated they use one or more trigger levels to invoke fair value procedures, approximately 73 percent said they are using the S&P 500 index or futures as one of the indicators in their process.

To read the full results of the survey, please click here.