Spline Data Announces the Launch of Its First Quantitative Solution to the Municipal Bond Pricing Curve
Spline Data, a newly created quantitative data provider for US municipal bonds, today announced the release of its first products designed to provide data-driven yield curves to the municipal bond market. Unlike current municipal market pricing agreements, which typically reflect only round lots that make up only five percent of trades, Spline’s new investment class, fixed-coupon municipal bond curves, are designed to take advantage of every trade in the market. Updated every five minutes, Spline curves are now available in several options, including rating, redemption source and, importantly, trade size.
Based in Chicago and founded by Matthew Smith, formerly of Headlands Tech Global Markets and TD Securities Automated Trading, Spline Data was formed last year in an initial round of funding led by Tower Research Ventures, the venture arm of trading firm Tower Research Capital.
“The municipal bond market continues to depend on noisy and disjointed price data that is increasingly out of sync with today’s e-commerce ecosystems.” said Matthew Smith, founder and CEO. “Since nearly 95 percent of transactions in this market are printed for $1 million or less, the need for quantified independent municipal bond curves is clear. My goal in creating Spline Data is to eliminate the guesswork required to execute in the municipal bond market by providing accurate and frequent quantitative market data similar to that available in more mature asset classes. Our curves are purely data-driven, provable, and transparent, providing granular inputs that are vital to professional traders and asset managers in their algorithms, executions, and analysis.”
“The demand of fixed income traders for quantitative market data and systematic trading methods has never been greater, especially in slower markets such as municipal bonds.” said John Cogman, chief investment officer at Tower Research Capital. “The development and product speed of Spline so far shows great potential for market disruption and will surely bring new trading opportunities and efficiency to the municipal bond market. From both a venture and trading standpoint, Tower is excited to partner with Matthew and his team.”
The Spline Data post announces the launch of its first quantitative municipal bond curve pricing solutions, first appearing on Fintech Finance.
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texasstandard.news contributed to this report.
