Pricing Partners has unveiled a new value-at-risk calculation tool for structured products on its Price-it platform. The new system has been in development for two years and will now be marketed to both buy-side and sell-side clients.

Value-at-risk is a widely used indicator that evaluates the potential loss of capital using market risk rather than just volatility. The valuations company has also unveiled a stress testing tool so clients can simulate the effect of a market crisis or other customised scenarios on structured products portfolios.

The VAR methodology takes into account changes in equities, dividends, volatility, correlation and interest rates, said Eric Benhamou, Paris-based chief executive of Pricing Partners. "It has been easy to find providers of VAR on simple products, but much trickier to find it on complex products."