Interactive Data is building out real-time delivery of its evaluated pricing services starting with plans to expand its real-time fixed income pricing services to include real-time evaluations. The expanded service is due to roll out in the final quarter of 2013 and will be followed by additional evaluation services with availability boosted from end of day to intra-day and real time.
As well as delivering real-time evaluated pricing as a data feed, Interactive Data will make it available from the company’s Apex platform, which was introduced in October 2012 to provide reference data in XML format via a selection of service delivery and access mechanisms. The company will also add real-time evaluated pricing to the Vantage fixed income transparency application it upgraded in April 2012.
Commenting on the addition of real-time evaluations and the development of Apex, Mark Hepsworth, president of pricing and reference data at Interactive Data, says: “The expansion of our evaluated pricing capabilities to real time continues the evolution of our products from end of day to intra-day and real-time delivery that supports pre-trade as well as post-trade activity.”
The company expects the real-time evaluated pricing service for fixed income, and indeed similar services for other asset classes, to move use cases beyond end-of-day functions such as calculating net asset value to include pre-trade transparency and investment analysis, better proof of best execution and improved risk management. On this basis, it also hopes to extend its reach beyond asset servicing and the buy side and further into the sell side.
Anthony Belcher, director of EMEA pricing and reference data at Interactive Data, says: “Real-time evaluated fixed income pricing is a signal of our intent. We are investing significantly to make evaluations available in real time throughout the day. We are announcing the first real-time service now so that clients can think about how they want to use it in what they are doing and to meet regulations.”
Looking forward, Belcher suggests real-time delivery of the company’s fair value equity service is a possibility, as well as intra-day evaluations in derivatives markets with enough liquidity to make sense of such services. He notes that existing clients will not have to make changes to consume real-time and more timely evaluation services, and from Interactive Data’s perspective concludes: “This is a step change in what we will deliver to clients.”