RBC Capital Markets has added Bloomberg’s evaluated pricing service (BVAL) to its list of vendors that will independently verify prices on its municipal bond holdings.
Investors in fixed income and derivatives face a complex set of challenges. Due to changes in marketplace dynamics and regulatory mandates, robust pricing solutions are critical for investors in fixed income and derivatives.
This announcement marks the growth of Bloomberg’s relationship with RBC Capital Markets, whose parent company, Royal Bank of Canada, already uses a number of Bloomberg products across its enterprise.
RBC Capital Markets will now use Bloomberg’s evaluated pricing, BVAL, for independent price verification. In addition, Bloomberg provides broad coverage of US fixed income securities, access to in-house evaluator teams and transparency into its pricing models through Bloomberg Terminal screens.
“As a top five firm in negotiated underwritings in the U.S., RBC Capital Markets places great emphasis on accuracy and transparency in pricing,” said Keith Solomon, managing director and deputy head, municipal products at RBC Capital Markets. “Bloomberg’s reputation for data quality and transparency were key factors in making our decision.”
BVAL draws on real-time access to market observations from a variety of contributed sources, such as reporting facilities, trading venues and market-makers. It gives traders, portfolio managers and pricing professionals transparency into how prices were derived by accessing BVAL through the Bloomberg Terminal service. Today, BVAL prices 2.5 million fixed income securities, including nearly 1 million municipal bonds. Prices are recalibrated three times a day using the most current and relevant trade data available.
“Bloomberg is offering innovative solutions for the municipal market that provide increased transparency and workflow efficiencies. We have integrated BVAL with the Bloomberg Barclays indices, released AAA<GO> as a market standard Muni curve and integrated yield spread analytics into sales and trading workflows,” said Varun Pawar, global head of Bloomberg’s evaluated pricing service.
Earlier this year, Rheos Capital Works, a privately-owned boutique investment manager based in Tokyo, selected Bloomberg’s buy-side solutions. The firm, which has investment focus on Japan as well as global equity markets, selected the service to optimise operational workflow in research and compliance management.
Copyright © 2018 RegTech Analyst
Copyright © 2018 RegTech Analyst
