Lumesis Integrates ICE’s Tax-Exempt Municipal Yield Curve into its New Issue and Secondary Pricing Services
Lumesis, home of the DIVER platform, and ICE Data Services, which is part of Intercontinental Exchange, Inc. (NYSE: ICE), today announced that the tax-exempt ICE Municipal Yield Curve and spreads for all underlying trades will be available to all Lumesis customers using the DIVER New Issue and Secondary Pricing services.
“A hallmark of our product growth and expansion is premised on listening to our clients,” said Gregg Bienstock, CEO of Lumesis. “When clients and prospects asked for the inclusion of the ICE Municipal Yield Curve, we were happy to include it on both of our pricing services. ICE’s tax-exempt Municipal
Yield curve provides our clients with an additional market perspective, including intraday updates, which our customers have long asked for.”
The ICE Municipal Yield Curve is a transaction-driven, rules-based high-grade municipal yield curve, providing more transparency with both real-time and end-of-day updates — powered by ICE’s industry-leading evaluated prices and reference data. It is constructed using trades with sizes of one million par amount and higher and represents investment-grade market movements and activity throughout the day.
“We are excited to be providing Lumesis’ customers with access to ICE’s data and analytics, which will allow them to make more informed decisions for new issue and secondary pricing,” said Mark Heckert, Chief Product Officer, Fixed Income and Data Services at ICE. “Access to municipal yield curves provides customers with a more transparent, transaction-based representation of municipal market movement, and ICE’s daily and intraday curves allow for better assessments based on trade data.”
The addition of the ICE Municipal Yield Curve comes on the heels of Lumesis announcing, in January, the incorporation of machine learning into its municipal pricing and scales software in an effort to address limitations of traditional interpolation and extrapolation methodologies. “The artificial intelligence software is used to predict the shape of a deal-specific municipal yield curve based on the unique structural and credit characteristics of the deal being priced and to use that predicted shape to fill-in portions of a yield curve that cannot be built from sparse observable market transactions,” said Tim Stevens, President and COO of Lumesis.
The DIVER Pricing and Scales and Secondary services helps bankers, underwriters, portfolio/asset managers, issuers and municipal advisors efficiently create new issue scales and pricing analyses and explore secondary market comps and activity while providing transparency into comprehensive data used to generate these analyses. Pricing and Scales also provide users the ability to refine parameters and comparable securities to reflect their professional judgment.
Lumesis and ICE will host a webinar on April 28 at 1PST/4EST to introduce this integration, discuss the ICE Municipal Yield Curve and to go over key value propositions of the New Issue and Secondary Pricing services. To register, please visit https://info.lumesis.com/lumesis-muni-technology-update-webinar.
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