Despite the elevated volatility in the U.S. rates market, fewer than 3% of tax-free fixed coupon U.S. municipal bonds trade on a daily basis, impacting price discovery and transparency of these bonds. Accessing data sets has become increasingly essential to form an accurate price, enabling market participants to manage risk more effectively and make better informed trading decisions.
Tradeweb Municipal Ai-Price addresses this problem through a combination of proprietary data, machine learning and other advanced data science methods, producing reliable pricing levels regardless of how often these bonds trade. The service provides daily pricing on over 960,000 municipal bonds using inputs from data published by the Municipal Securities Rulemaking Board (MSRB) and proprietary data from the Tradeweb platform. As compared to traditional municipal bond pricing services, Tradeweb’s Municipal Ai-Price model dynamically fine-tunes key factors and does not rely on manual interpretation in order to predict at or near a traded price.
As a global provider of financial information, SIX carefully chooses partners to provide reliable and integrated proprietary data to their clients. For municipal bonds, by partnering with Tradeweb and their approach that leverages AI, clients gain access to dynamic data sets that adapt as the market does, pairing both pre- and post-trade information and expertise on evaluated municipal bond pricing from Tradeweb’s robust market.
Shai Popat, Managing Director, Head Product and Commercial Strategy Financial Information at SIX, emphasizes: “Through this collaboration with Tradeweb, SIX offers its clients a greater level of municipal bond data to power their operations and risk management systems. Clients can receive this data in a standardized format, in conjunction with our high-quality rates, pricing and reference data, as well as our renowned corporate actions and regulatory data.”
Lisa Schirf, Managing Director, Global Head of Data Strategy at Tradeweb, added: “With a long history in the municipal bond space, we are excited to offer a solution that increases transparency and accessibility for clients of SIX. We believe Tradeweb Municipal Ai-Price represents the next frontier in applying data science to help make markets more efficient with high-quality, accurate intraday and closing reference prices.”
Further information about market data at SIX is available here.