Open Market Value (OMV)

An Open Market Value (OMV) is a valuation measure that reflects the current price of an asset or service in a competitive market with multiple buyers and sellers actively participating.

• AKA: Open Market Price, Market Transaction Value, Current Market Value, Market Value.
• Context:
  • It can represent the price achievable in a liquid market where supply and demand determine transaction prices.
  • It can differ from Fair Market Value (FMV) by reflecting actual market transactions rather than hypothetical arm's length conditions.
  • It can apply to insurance claims (e.g., total loss vehicle payouts) or commodity trading (e.g., oil futures prices).
  • It can fluctuate based on market sentiment, economic indicators, and geopolitical events.
  • It can be verified through public auction results or real-time trading data.
  • ...
• Examples:
  • Automotive Insurance OMVs, such as:
    • Total Loss Vehicle Valuation, based on comparable vehicle sales in the same region.
  • Real Estate OMVs, such as:
    • Residential Property OMV, derived from recent sales in urban areas.
  • Commodity Market OMVs, such as:
    • Crude Oil Spot Price, updated daily on commodity exchanges.
  • ...
• Counter-Examples:
  • Book Value, calculated from accounting records rather than market-driven prices.
  • Sentimental Value, based on personal attachment rather than market demand.
  • Forced Liquidation Value, determined under distressed sale conditions.
• See: Market Liquidity, Fair Market Value (FMV), Commodity Pricing, Insurance Adjustment, Economic Indicator, Asset Valuation, Supply-Demand Dynamics.

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References

2025

• (Wikipedia, 2025) ⇒ https://en.wikipedia.org/wiki/Market_value Retrieved:2025-2-19.
  • Market value or OMV (Open Market Valuation) is the price at which an asset would trade in a competitive auction setting. Market value is often used interchangeably with open market value, fair value or fair market value, although these terms have distinct definitions in different standards, and differ in some circumstances.

2023

• (AAI, 2023) ⇒ American Association of Insurers. (2023). "Open Market Value in Automotive Insurance Claims". In: AAI Publications.
  • QUOTE: Open Market Value (OMV) is the price a vehicle would fetch in the local market immediately before a total loss event.

    Insurers use OMV to ensure claim payouts align with actual replacement costs, excluding depreciation or negotiation discounts.

    Sources include dealership quotes, online listings, and auction results from the past 90 days.

2022

• (ECB, 2022) ⇒ European Central Bank. (2022). "Market Valuations and Open Market Pricing". In: ECB Reports.
  • QUOTE: OMV for financial instruments like government bonds is derived from trading platforms where bid-ask spreads reflect liquidity and investor confidence.

    Unlike theoretical valuation models, OMV captures real-time market participant behavior, including panic selling or speculative buying.

    Central banks monitor OMV trends to assess market stability during economic crisises.

2021

• (Ng & Tan, 2021) ⇒ K. Ng, and H. Tan. (2021). "Open Market Value in Real Estate Transactions". In: Real Estate Economics Journal.
  • QUOTE: OMV in real estate is calculated using recent transactions of comparable propertys within the same neighborhood and market cycle.

    Unlike appraised value, OMV excludes subjective adjustments and focuses on empirical data from closed sales.

    Discrepancies between OMV and listing prices often indicate overpricing or market corrections.

2020

• (FCA, 2020) ⇒ Financial Conduct Authority. (2020). "Guidelines on Market Data Transparency". In: FCA Policy Documents.
  • QUOTE: OMV for financial products must be based on executable prices from regulated exchanges, not internal models or historical averages.

    Firms must disclose OMV calculation methods to prevent market manipulation or misleading valuations.

    Algorithmic trading platforms update OMV in millisecond intervals to reflect market volatility.

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