Valuation separation


At the end of May, Carnegie Investment Bank partnered with SuperDerivatives, a provider of multi-asset front-office systems, to deliver an independent valuation service for the bank's equity derivatives portfolio. The move by Carnegie to select an external validation company was necessitated by events in early 2007, when traders at the bank manipulated valuations of trading positions, inducing a warning from the UK Financial Services Authority (FSA). In order to preclude any further manipulation