S&P Capital IQ Offers Pricing Data from Xtrakter
S&P Capital IQ has expanded the depth of its global fixed-income pricing and valuations service by adding data from Xtrakter's XM2M service.
The daily reported trade data and bid and offer quotes on 45,000 domestic and international fixed-income instruments, including illiquid asset-backed securities, from XM2M will complement S&P Capital IQ's trade price, evaluated price and risk-adjusted model valuation service. The XM2M service relies on over 100 sources all of which are financial institutions trading the financial instruments.
Xtrakter, owned by Euroclear SA, says that the XM2M offering is popular among interdealer brokers and market makers who want to ensure their fixed-income securities are correctly valued. "Combining daily trade prices and quotes into our offering assists pricing, accounting, and investment professionals, as well as risk managers to better distinguish between price and valuation risk and market and credit risk," says Peter Jones, senior director for S&P Capital IQ in London. "It also provides insights into underlying drivers of security and issuer risk."
A price refers to the level at which a financial instrument traded or was last quoted. Price risk can occur if the price of a financial instrument is stale; represents odd lots; retail volume or other circumstances. Valuation risk arises when less frequently traded instruments are valued using market data inputs, models and methodologies. Financial firms -- and regulators -- increasingly want more information on the inputs and methodologies used to value securities so they can make comparisons between sources and valuation approaches.
The data from XM2M will be available through S&P Capital IQ's Valuation and Data Transparency web portal as well as plug-in and datafeed services. S&P Capital IQ's news of its affiliation with Xtrakter follows its announcement of deal with London-headquartered Exchange Data International to incorporate that firm's global or non- U.S. reference and corporate actions data into S&P Capital IQ's datafeeds.
Written by Chris Kentouris, Editor-in-chief (Chris can be contacted through Chris.Kentouris@hotmail.com)