In a move to further enhance market transparency, the Municipal Securities Rulemaking Board (MSRB) recently announced the addition of the Tradeweb AAA Municipal Curve to its Electronic Municipal Market Access (EMMA) website. This addition marks a significant step in the board’s ongoing efforts to consolidate data on EMMA, offering investors access to crucial market indicators that aid in evaluating bond prices and yields, measuring market direction, and determining pricing on new bond issues.
The Tradeweb AAA Municipal Curve joins a growing list of indicators available on EMMA, showcasing the MSRB’s commitment to expanding the range of accessible data on its free platform. According to MSRB Chief Market Structure Officer John Bagley, the addition of the curve is a vital enhancement to market transparency. By incorporating feedback from market participants, the board continues to improve EMMA, providing users with valuable tools for making informed investment decisions.
Tradeweb’s AAA Municipal Curve operates in conjunction with its Municipal AiPrice machine learning model, focusing on select AAA-rated general obligation and revenue bonds. This hourly updated curve combines data from the MSRB and Tradeweb’s electronic municipal bond trading platform, utilizing pre-trade observations and proprietary machine learning algorithms to produce a more timely and accurate yield curve. By back-testing each observation before inclusion, the model ensures reliable outputs and supports Tradeweb’s Municipal AiPrice price predictions.
Partnership for Platform Advancement
The collaboration between MSRB and Tradeweb highlights the board’s dedication to investing in and updating the EMMA platform, originally launched in 2022. Bagley emphasized the importance of partnering with third-party providers to introduce additional tools to EMMA, such as yield curves, ratings, and a new issue calendar. These enhancements aim to elevate transparency within the municipal securities market, providing investors with comprehensive insights into pricing and market trends.
The addition of the Tradeweb AAA Municipal Curve to EMMA represents a significant milestone in the evolution of market transparency. By leveraging innovative yield-curve models and fostering partnerships with industry leaders, the MSRB continues to empower investors with the tools they need to navigate the complexities of the municipal bond market effectively. This commitment to enhancing market accessibility and providing reliable data underscores the board’s mission to promote integrity and efficiency in the financial sector.