---
title: "What market data does my valuation require?"
slug: "what-market-data-does-my-valuation-require"
updated: 2024-08-30T10:32:52Z
published: 2024-08-30T10:32:52Z
canonical: "support.lusid.com/what-market-data-does-my-valuation-require"
---

> ## Documentation Index
> Fetch the complete documentation index at: https://support.lusid.com/llms.txt
> Use this file to discover all available pages before exploring further.

# What market data does my valuation require?

Your [recipe](/v1/docs/what-is-a-recipe) must be able to locate market data suitable for each [type of instrument](/v1/docs/what-instruments-does-lusid-support) you wish to value in an appropriate LUSID store.

The quality and quantity of [market data](/v1/docs/market-data) required depends upon:

- The instrument types being valued, for example `Equity`, `Bond`, `FxForward`, `InterestRateSwap` and so on.
- The pricing models chosen, for example `SimpleStatic`, `Discounting`, `BlackScholes` and so on. Note not all pricing models are valid for each instrument type.
- The number of days in the valuation schedule.

To help you discover what market data your recipe must locate for a particular combination of an instrument type and a [pricing model valid for that type](/v1/docs/what-pricing-models-can-i-use-in-my-valuation), call either:

- The [QueryInstrumentCapabilities](https://www.lusid.com/docs/api#operation/PostInstrumentCapabilities) API with an example economic definition of an instrument type and a valid pricing model.
- The [GetExistingInstrumentCapabilities](https://www.lusid.com/docs/api#operation/GetInstrumentCapabilities) API with the [LUID](/v1/docs/what-is-a-lusid-instrument-id-or-luid) of an actual instrument and a valid pricing model.

> **Note**: If you find you need an additional license to use these APIs, [contact Technical Support](https://www.finbourne.com/contact).

Consider the following example of a call to the `QueryInstrumentCapabilities` API with the economic definition of a `FxForward` in the body of the request and the `ForwardFromCurve` pricing model specified in the URL:

```json
curl -X POST "https://<your-domain>.lusid.com/api/api/instruments/capabilities?model=ForwardFromCurve"
  -H "Authorization: Bearer <your-API-access-token>"
  -H "Content-Type: application/json-patch+json"
  -d '{
        "instrumentType": "FxForward",
        "startDate": "2021-11-15T10:00:00.0000000+00:00",
        "maturityDate": "2022-05-15T10:00:00.0000000+00:00",
        "domAmount": 1000000,
        "domCcy": "EUR",
        "fgnAmount": -1200000,
        "fgnCcy": "USD"
     }'
```

The response contains:

- A list of [features](/v1/docs/what-are-instrument-features), if available for this instrument type.
- The [metrics](/v1/docs/which-metrics-can-i-include-in-my-valuation-report) you can include in your valuation report.
- The market data your recipe must be able to locate (the `economicDependencies` array):

```json
{
  "instrumentId": "",
  "model": "ForwardFromCurve",
  "features": [],
  "supportedAddresses": [
    "Valuation/InstrumentPV",
    "Valuation/PV",
    "Valuation/DirtyPriceKey",
    "Valuation/CleanPriceKey",
    "Valuation/InstrumentAccrued",
    "Valuation/Accrued",
    "Valuation/EffectiveAt",
    "Valuation/InstrumentExposure",
    "Valuation/Model/Name",
    "Valuation/Model/Approach",
    "Valuation/PV/Ccy",
    "Valuation/PV/Amount",
    "Valuation/CleanPV",
    "Valuation/Exposure/Ccy",
    "Valuation/Exposure/Amount",
    "Valuation/Exposure"
  ],
  "economicDependencies": [
    {
      "domesticCurrency": "EUR",
      "foreignCurrency": "USD",
      "date": "0001-01-01T00:00:00.0000000+00:00",
      "dependencyType": "Fx"
    },
    {
      "currency": "EUR",
      "date": "0001-01-01T00:00:00.0000000+00:00",
      "dependencyType": "Discounting"
    },
    {
      "domesticCurrency": "EUR",
      "foreignCurrency": "USD",
      "curveType": "FxFwdCurve",
      "date": "0001-01-01T00:00:00.0000000+00:00",
      "dependencyType": "FxForwards"
    },
    {
      "currency": "EUR",
      "date": "0001-01-01T00:00:00.0000000+00:00",
      "dependencyType": "Cash"
    },
    {
      "currency": "USD",
      "date": "0001-01-01T00:00:00.0000000+00:00",
      "dependencyType": "Cash"
    },
  ],
  ...
}
```

We can see that, for this instrument type and pricing model combination, and for each day in the valuation schedule, your recipe must be able to locate:

| **Economic dependency type** | **Market data** | **LUSID market data store** |
| --- | --- | --- |
| `Fx` | A FX spot rate for EUR/USD | [Quote Store](/v1/docs/how-do-i-upload-a-market-price-or-fx-spot-rate-to-the-quote-store) |
| `Discounting` | A discount factor curve for EUR | [Complex Market Data Store](/v1/docs/how-do-i-upload-an-object-to-the-complex-market-data-store) |
| `FxForwards` | A FX forward curve for EUR/USD |

> **Note**: The two `Cash` economic dependency types refer to currency instruments mastered in the LUSID Security Master. Since your LUSID domain is [automatically provisioned](/v1/docs/how-do-i-create-a-currency) with all likely currencies, you can typically ignore these dependencies.

Your recipe must contain one *market data rule* per economic dependency type that sets out criteria for locating suitable data in the appropriate store. [See how to do this](/v1/docs/recipes-locating-market-data).