Swiss-based financial data expert SIX has made municipal bond pricing generated by global electronic marketplace operator Tradeweb (Tradeweb Municipal Ai-Price) available to clients. SIX will now provide US municipal bond pricing which leverages Tradeweb’s proprietary machine learning and data science models combined with proprietary data from Tradeweb’s electronic marketplace.
Despite the elevated volatility in the US rates market, fewer than 3% tax-free fixed coupon US municipal bonds trade on a daily basis, impacting price discovery and transparency of these bonds. 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.
