The Municipal Securities Rulemaking Board has taken a significant step towards enhancing market transparency by adding the Tradeweb AAA Municipal Curve to its Electronic Municipal Market Access website. This move is part of a broader effort to consolidate more data on EMMA, providing investors with valuable tools to evaluate bond prices and yields, measure market direction and performance, and determine pricing on new bond issues. By offering this curve for free on EMMA, the MSRB is improving market accessibility and empowering investors with real-time information.
The Tradeweb AAA Municipal Curve, which is now available on EMMA, complements the existing Municipal AiPrice machine learning model. This curve is based on select AAA-rated general obligation and revenue bonds, and is updated hourly using a combination of public MSRB data and data from Tradeweb’s electronic municipal bond trading platform. By incorporating pre-trade observations and proprietary machine learning algorithms, Tradeweb has managed to create a yield curve that offers timely and reliable insights. This innovative approach allows for the construction of accurate price predictions, further enhancing the tools available to investors on EMMA.
The partnership between MSRB and Tradeweb demonstrates a commitment to investing in and updating the EMMA platform. Since its launch in 2022, EMMA has evolved to provide a comprehensive range of market indicators, including yield curves, ratings, and a new issue calendar. By collaborating with third-party providers like Tradeweb, MSRB is able to expand the capabilities of EMMA and enhance transparency in the municipal securities market. As John Bagley, MSRB Chief Market Structure Officer, rightly points out, incorporating feedback from market participants and adding new features like the Tradeweb AAA Municipal Curve are crucial steps in improving the accessibility of market data.
The addition of the Tradeweb AAA Municipal Curve to EMMA represents a significant milestone in the MSRB’s ongoing efforts to enhance market transparency. By leveraging innovative technologies and partnerships with industry leaders like Tradeweb, the board is able to provide investors with valuable tools for making informed decisions in the municipal securities market. Moving forward, it will be interesting to see how EMMA continues to evolve and adapt to meet the changing needs of investors and market participants.