Thomson Reuters has introduced a specialized intraday evaluated pricing service for money market instruments, providing evaluated pricing that is updated throughout the global business day for public and other non-public short-term instruments. The new service helps mutual fund managers meet demands for intraday net asset value (NAV) calculations, as well as for increased investor disclosure and transparency requirements that have emerged as part of the U.S. Securities and Exchange Commission’s (SEC) money market fund reform.
Evaluated prices are derived by Thomson Reuters Pricing Service (TRPS) – an independent, global pricing service that covers over 2.6 million fixed income securities and derivatives. Users can subscribe to 24/5 updated evaluated pricing on public asset classes, including corporate bonds, agency notes, commercial paper, certificates of deposit, sovereign debt, municipal bonds, and asset-backed securities. Users also can receive evaluated pricing on other non-public short-term instruments, including Repurchase Agreements and Bankers Acceptances, for all money market funds and/or all types of portfolio holding instruments. Customers need only submit a small series of data points to receive price evaluations on bespoke instruments.
Thomson Reuters is launching the new service as mutual funds edge closer to the October 14th deadline for mutual fund companies to comply with the new SEC rules. Under new regulations, institutional prime money market funds are required to price and transact floating NAVs. As funds can be bought or sold throughout the day, NAVs also must be calculated throughout the day. Finally, disclosure on daily NAVs, levels of liquid assets and net flows is required by funds and are to be reported on their websites.
‘‘The need for accurate and more-frequent valuations, enhanced investor disclosure and greater transparency continue to drive reform,” said Jayme Fagas, Global Head of Valuations and Transparency for Thomson Reuters. “With money market regulation at the top of the compliance agenda for many of our customers, we’re committed to staying one step ahead, delivering the extensive, high-quality and trusted evaluated pricing data they require to adhere to new rules with timeliness and confidence.’’
The launch of the specialized intraday money market pricing service marks an important step forward in enhancing Thomson Reuters existing intraday evaluated pricing capabilities. TRPS already delivers constantly updated benchmark-adjusted pricing for government and corporate bonds. With snapshot times for intraday money market files delivered constantly –i.e. every hour on the hour, 24/5 – and file delivery available within 10 minutes of the snapshot or benchmarked time, the new solution facilitates timely NAV reporting and intraday price discovery.
Accuracy is also paramount. The growing TRPS evaluations team, which employs professionals with deep fixed income experience, incorporates industry-accepted pricing models, stringent quality control checks and extensive market data into its evaluations, resulting in more accurate NAV computations and more reliable assessments of risk.
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