MUNI Industry Transformed by New Data Analytics

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Municipal Bond Information Services (MBIS), a consortium of eleven municipal market service providers, has launched three information services designed to enhance pre-trade price transparency and post-trade operational practices for the municipal bond marketplace.

Municipal Bond Information Services

Municipal Bond Information Services, LLC

Municipal Bond Information Services (MBIS), a consortium of eleven municipal market service providers, has launched three information services designed to enhance pre-trade price transparency and post-trade operational practices for the municipal bond marketplace.

The MBIS services were launched to serve an unmet need that helps promote fair market bond pricing in an industry riddled with pricing challenges due to the inactive nature of municipal bonds. For the first time, municipal bond investors, dealers, and compliance officers have access to a source for pre-trade pricing information that incorporates additional information previously not available. This technology collects over 100,000 market observations a day which includes bids and offers of traded and more importantly, information on a great number of securities that do not transact on any given day. A significant portion of the data represents information on securities not reported in the MSRB trade reporting data service. MBIS hopes to serve the industry as a complement to existing trade reporting information and promote further market price transparency.

The MBIS Services include:

Market Data Feed Service- MBIS provides bid and offer data that is captured every five minutes and is made available as often as every 15 minutes.

Comparable Securities Service

MBIS Reporting Service

Municipal Bond Information Services, LLC was formed in direct response to the concerns raised in the Securities and Exchange Commission (SEC) Report on the Municipal Securities Market of July 2012. Its products and services are designed to address deficiencies that are attributable, in part, to limited price transparency in the municipal bond markets. Due to the inactive nature of municipal bonds and the lack of bond trade data available, accurate pricing can be difficult creating SEC compliance challenges and customer dissatisfaction.

Regulators are seeking to progress market price transparency in the U.S. OTC market. Planned rule changes as to best practice are still in development.. "Our mission is to deliver practical access to information that can enhance pre- and post-trade price analysis in the municipal secondary market. With access to our leading indicative price information, customers will have a better view of the broader marketplace when formulating their value opinions for municipal investments", states Ron Valinoti, Operations Manager for MBIS.

The MBIS consortium brings together some of the largest brokerage services and alternative trading systems (ATS) in the municipal bond market, including:

Associated Bond Brokers, Inc.
Butler Muni, LLC
Hartfield, Titus & Donnelly, LLC
RW Smith and Associates
Regional Brokers, Inc
Sentinel Brokers Company, Inc.
Stark Municipal Brokers
Tradeweb Markets, LLC
Tradition Aisel (North America) Inc.
Tullett Prebon Financial Services, LLC

Ron Valinoti, founder of Triangle Park Capital Markets Data, an information services company, manages the business operations for MBIS. More information can be found at mbis.com.

Contact:
Susan Steely (832.878.1219) - Susie(at)quenzel(dot)com

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Sean Breckley
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