About a-team Marketing Services
The knowledge platform for the financial technology industry
The knowledge platform for the financial technology industry

A-Team Insight Blogs

Markit Adds Real-Time Bond Pricing to Hourly and End-of-Day Services

Subscribe to our newsletter

Markit has responded to market demand for real-time bond pricing with a streaming service covering investment grade and high yield corporate, sovereign and agency bonds. The service is designed to support pre-trade transparency, intraday net asset value calculations, and the need for exchange traded fund managers to understand how constituents of funds are priced throughout the day.

The real-time bond pricing service was introduced after lengthy testing a couple of weeks ago and adds to Markit’s existing hourly and end-of-day bond pricing services. While the hourly and end-of-day services use a traditional evaluator approach for bond pricing, the real-time service differentiates in using a hybrid approach that reduces latency.

The hybrid approach combines data from direct dealer feeds, trade colour and data captured by Markit’s real-time parsing technology, and uses a machine driven algorithm to publish prices based on the source data. Evaluator audits safeguard accuracy and reliability.

The real-time pricing service initially covers over 35,000 corporate, sovereign and agency bonds across 40 currencies, but not the whole universe of bonds in the hourly and end-of-day services. Nathan Kirk, head of EMEA business strategy for fixed income pricing at Markit, explains: “The hourly and end-of-day services provide pricing for about 80,000 bonds. The real-time service provides pricing for over 35,000 bonds that is based on observable information from different data feeds, but if we are confident on pricing we will add more bonds to the service.”

The real-time bond pricing service will be charged as an additional service on top of the hourly and end-of-day services, with customers subscribing to the full universe of bonds or a selected list of securities. The company’s fixed income pricing service already runs real-time services for bank loans and credit default swaps, and includes pricing for municipal bonds and securitised products that will be streamed live when there is market demand and where there is sufficient observable data. Meantime, Markit is working on a project that will produce a real-time money markets pricing service.

Subscribe to our newsletter

Related content

WEBINAR

Upcoming Webinar: Best practices for creating an effective data quality control framework

Date: 8 November 2022 Time: 10:00am ET / 3:00pm London / 4:00pm CET Duration: 50 minutes Data quality is critical to capital markets processes from identifying counterparties to building customer relationships, regulatory reporting, and ultimately improving the bottom line. It can also be extremely difficult to achieve. One solution is a data quality control framework...

BLOG

Get Ready – Dual UK and EU Regulatory Reporting is Only a Year Away

Dual UK and EU regulatory reporting has been a topic of conversation in capital markets both before and post-Brexit, but with the withdrawal of the FCA’s Temporary Permission Regime set for 2023, its reality is coming into focus, calling on data and regulatory practitioners to address the challenges of the change and find compliant solutions....

EVENT

RegTech Summit APAC

Now in its 2nd year, the RegTech Summit APAC will bring together the regtech ecosystem to explore how capital markets in the APAC region can leverage technology to drive innovation, cut costs and support regulatory change. With more opportunities than ever before for RegTech to add value, now is the time to invest for the future. Join us to hear from leading RegTech practitioners and innovators who will share insights into how they are tackling the challenges of adopting and implementing regtech and how to advance your RegTech strategy.

GUIDE

Regulatory Data Handbook 2022/2023 – Tenth Edition

Welcome to the tenth edition of A-Team Group’s Regulatory Data Handbook, a publication that has tracked new regulations, amendments, implementation and data management requirements as regulatory change has impacted global capital markets participants over the past 10 years. This edition of the handbook includes new regulations and highlights some of the major regulatory interventions challenging...