Chicago-based Northern Trust has expanded its securities exposure reporting to include counterparties for over-the-counter derivatives contracts, in addition to traditional investments such as equity and fixed-income holdings.

The new service will be available on the firm's web portal, Passport, and is intended to simplify the process of gathering and aggregating information across multiple investments and accounts.

The new tool combines market exposure from equity and fixed income holdings with other sources of exposure such as counterparty exposure from over-the-counter derivatives.

Northern Trust has also enhanced the detail available in client reports, including additional issuer exposure information and exposure breakout by asset category.

"Market volatility and shocks to the financial system have prompted institutional investors to take a broader, deeper view of exposures for their risk management and compliance oversight programmes," said Lenora Kelley, product manager for Northern Trust's compliance products.

"This tool gives our clients the ability to gain a quick understanding of the impact on a fund or plan from exposure to a single entity - both market exposure from physical assets and counterparty exposure from OTC derivatives transactions - when market events occur," she said.