MarketAxess Expands AI-Powered Pricing Engine to Cover Municipal Bonds
MarketAxess (Nasdaq: MKTX) has expanded its AI-powered pricing engine, CP+, to cover municipal bonds. The system leverages proprietary data from the MarketAxess trading platform, TraX® market data, and public sources like TRACE to provide real-time pricing for approximately 930,000 municipal bonds.
The expansion aims to deliver accurate and unbiased reference pricing for MSRB-reportable municipal bonds, enhancing transparency and efficiency in the historically fragmented municipal bond market. CP+, which was first introduced in 2017, serves as a critical data input for multiple MarketAxess trading protocols and solutions, including Auto-X™ and Portfolio Trading.
MarketAxess (Nasdaq: MKTX) ha ampliato il suo motore di pricing alimentato dall'AI, CP+, per includere le obbligazioni municipali. Il sistema utilizza dati proprietari dalla piattaforma di trading MarketAxess, dati di mercato TraX® e fonti pubbliche come TRACE per fornire prezzi in tempo reale per circa 930.000 obbligazioni municipali.
L'espansione mira a offrire prezzi di riferimento accurati e imparziali per le obbligazioni municipali riportabili alla MSRB, migliorando la trasparenza e l'efficienza nel mercato delle obbligazioni municipali, storicamente frammentato. CP+, introdotto per la prima volta nel 2017, funge da input critico per diversi protocolli e soluzioni di trading di MarketAxess, tra cui Auto-X™ e Portfolio Trading.
MarketAxess (Nasdaq: MKTX) ha ampliado su motor de precios impulsado por AI, CP+, para incluir bonos municipales. El sistema aprovecha datos propietarios de la plataforma de trading MarketAxess, datos de mercado TraX® y fuentes públicas como TRACE para proporcionar precios en tiempo real para aproximadamente 930,000 bonos municipales.
La expansión tiene como objetivo ofrecer precios de referencia precisos e imparciales para bonos municipales reportables a la MSRB, mejorando la transparencia y la eficiencia en el mercado de bonos municipales, históricamente fragmentado. CP+, que se introdujo por primera vez en 2017, sirve como un insumo crítico para múltiples protocolos y soluciones de trading de MarketAxess, incluidos Auto-X™ y Portfolio Trading.
MarketAxess (Nasdaq: MKTX)는 AI 기반 가격 엔진인 CP+를 확대하여 지방채를 포함하게 되었습니다. 이 시스템은 MarketAxess 거래 플랫폼의 독점 데이터, TraX® 시장 데이터 및 TRACE와 같은 공공 출처의 데이터를 활용하여 약 930,000개의 지방채에 대한 실시간 가격을 제공합니다.
이번 확장은 MSRB에 보고할 수 있는 지방채에 대한 정확하고 편향 없는 기준 가격을 제공하여 역사적으로 분열된 지방채 시장의 투명성과 효율성을 높이는 것을 목표로 하고 있습니다. 2017년에 처음 도입된 CP+는 Auto-X™ 및 포트폴리오 거래를 포함한 여러 MarketAxess 거래 프로토콜 및 솔루션에 중요한 데이터 입력 역할을 합니다.
MarketAxess (Nasdaq : MKTX) a élargi son moteur de tarification alimenté par l'IA, CP+, pour inclure les obligations municipales. Le système utilise des données propriétaires de la plateforme de trading MarketAxess, des données de marché TraX® et des sources publiques comme TRACE pour fournir des prix en temps réel pour environ 930 000 obligations municipales.
Cette expansion vise à fournir des prix de référence précis et impartiaux pour les obligations municipales signalables à la MSRB, améliorant ainsi la transparence et l'efficacité d'un marché des obligations municipales historiquement fragmenté. CP+, qui a été introduit pour la première fois en 2017, sert d'entrée de données critique pour plusieurs protocoles et solutions de trading de MarketAxess, y compris Auto-X™ et le trading de portefeuille.
MarketAxess (Nasdaq: MKTX) hat seine KI-gestützte Preisbildungsmaschine CP+ erweitert, um kommunale Anleihen einzubeziehen. Das System nutzt proprietäre Daten von der Handelsplattform MarketAxess, TraX® Marktdaten und öffentliche Quellen wie TRACE, um die aktuellen Preise für rund 930.000 kommunale Anleihen bereitzustellen.
Die Erweiterung zielt darauf ab, genaue und unparteiische Referenzpreise für MSRB-reportierbare kommunale Anleihen zu liefern und die Transparenz und Effizienz im historisch fragmentierten Markt für kommunale Anleihen zu verbessern. CP+, das erstmals 2017 eingeführt wurde, dient als kritische Dateneingabe für mehrere Handelsprotokolle und Lösungen von MarketAxess, einschließlich Auto-X™ und Portfolio Trading.
- Expansion of AI-powered pricing coverage to ~930,000 municipal bonds
- Strategic growth into the municipal bond market segment
- Enhancement of existing trading protocols and solutions
- None.
Insights
The expansion of CP+ to municipal bonds represents a significant technological leap in fixed-income trading. The AI-powered pricing engine addresses a important pain point in the muni market - the lack of real-time, accurate pricing data across a vast universe of ~930,000 bonds. This is particularly valuable given the traditionally fragmented and illiquid nature of muni trading.
The integration of multiple data sources (proprietary platform data, TraX® and TRACE) into a unified algorithmic pricing model creates a powerful network effect. As trading volume increases, the AI model's accuracy improves, potentially creating a virtuous cycle of increased adoption and better pricing. This could accelerate the shift from traditional voice trading to electronic platforms.
This development could significantly impact market dynamics in the
The integration with Auto-X™ and Portfolio Trading protocols suggests a comprehensive strategy to increase market share and trading efficiency. For MarketAxess, this represents a strategic move to strengthen its competitive position against traditional trading methods and other electronic platforms in the growing muni market segment.
CP+™ real-time pricing now available on the fastest growing electronic muni marketplace
By leveraging proprietary data from the MarketAxess trading platform, TraX® market data, and public sources like TRACE, CP+ goes beyond traditional fixed income pricing sources to deliver value across the entire investment lifecycle—from portfolio construction and price discovery to end-of-day pricing validation. With this expansion of coverage, MarketAxess clients trading munis will benefit from accurate and unbiased reference pricing for the MSRB-reportable municipal bond universe.
“We are excited to see the difference the introduction of real-time, AI-powered algorithmic pricing can make to a historically fragmented market like municipal bonds. Our award-winning models excel at extracting pricing signals from multiple data sources, which is crucial in munis where trading is known to be sporadic,” says Julien Alexandre, Global Head of Research at MarketAxess.
“The muni marketplace has seen notable e-trading growth in recent years, and we believe innovations like CP+ with real-time, actionable data for ~930,000 municipal bonds will not only increase transparency and efficiency, but also the speed of adoption for electronic trading,” says Daniel Kelly, Head of Municipal Securities at MarketAxess.
First introduced to the market in 2017, CP+ is a critical data input and pricing source for multiple MarketAxess trading protocols and solutions, including Auto-X ™ and Portfolio Trading. For more information on MarketAxess muni solutions and CP+, visit: https://www.marketaxess.com/trade/municipal-bonds
About MarketAxess
MarketAxess (Nasdaq: MKTX) operates a leading electronic trading platform that delivers greater trading efficiency, a diversified pool of liquidity and significant cost savings to institutional investors and broker-dealers across the global fixed-income markets. Over 2,000 firms leverage MarketAxess’ patented technology to efficiently trade fixed-income securities. Our automated and algorithmic trading solutions, combined with our integrated and actionable data offerings, help our clients make faster, better-informed decisions on when and how to trade on our platform. MarketAxess’ award-winning Open Trading® marketplace is widely regarded as the preferred all-to-all trading solution in the global credit markets. Founded in 2000, MarketAxess connects a robust network of market participants through an advanced full trading lifecycle solution that includes automated trading solutions, intelligent data and index products and a range of post-trade services. Learn more at www.marketaxess.com and on X @MarketAxess.
View source version on businesswire.com: https://www.businesswire.com/news/home/20241205674310/en/
INVESTOR RELATIONS
Stephen Davidson
MarketAxess Holdings Inc.
+1 212 813 6313
sdavidson2@marketaxess.com
MEDIA RELATIONS
Marisha Mistry
MarketAxess Holdings Inc.
+1 917 267 1232
mmistry@marketaxess.com
Source: MarketAxess Holdings Inc.
FAQ
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