New initiative responds to growing demands from customers and the market amid concerns about the lack of frequency of price updates for illiquid OTC securities.
London, 18 May 2006 — Standard & Poor’s Securities Evaluations (“SPSE”), a leading global provider of independent securities evaluations, today announced the enhancement of its offering by becoming the only provider of evaluated prices to deliver opinions of value 5 times per day for its complete universe of European securities. In response to growing market and regulatory demands for more frequent price updates on illiquid OTC securities SPSE will deliver its bond evaluations at 10:00, 12:00, 14:00, 17:00 and US close of business at 21:00 (4:00pm ET).
The introduction of valuations at 10:00 and 12:00 is particularly significant. Prior to this firms had no consistent and transparent method of re-valuing their securities to reflect overnight activity and the market’s early morning response. “This solves a problem faced by a number of European funds that currently prefer to calculate their NAV intraday and currently have to rely upon previous market close data. This represents a significant advance in the delivery of evaluated pricing data.” Peter Jones, Director, Standard & Poor’s Securities Evaluations, Europe.
The service will cover the complete universe of European securities evaluated by SPSE, and includes the recently launched European ABS/MBS/CMBS/RMBS pricing service. Customers of SPSE will have easy access to this data as a result of the new ‘Masterfeed’ file – a delivery of pricing data that consolidates all the asset classes SPSE prices into one easy to use and customisable comma delimited file.
Commenting further, Peter Jones, said: “This is an important increase in the level of service that we are now able to offer our clients. With the launch of the Masterfeed delivery solution earlier on this year and now our new intraday pricing capability we are able to offer clients an increasingly flexible and customisable pricing solution. At SPSE we will continue to listen to the market, invest in our infrastructure and increase our asset class coverage of complex OTC securities to fulfill the growing appetite for our service.”
This announcement is the latest in a series from SPSE as it has increased its investment in the European market place in response to market demand. The other announcements include the hiring of more evaluators and support staff, increasing the asset class coverage with the launch of the European ABS/MBS/CMBS/RMBS service and signing an exclusive alliance with Complex Securities Valuations (CSV) to deliver their interest rate swaps/CDS/CDO/CLO prices via the new SPSE Masterfeed service.