Fund managers are moving to get independent values on over-the-counter derivatives, rather than relying on their broker-dealers.

Just in the nick of time. "The financial crisis showed the fallacies of being dependent strictly on counterparties who had a vested interest in how the assets were valued," said Andy Nybo, director of derivatives research for TABB Group, a New York based research firm. "Coupled with the growing demands of investors and regulatory requirements for transparency, asset managers are turning to an array of fund administrators, valuation specialists and software vendors" to price derivatives such as credit default and interest-rate swaps.

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