Thomson Reuters Introduces Intraday Pricing for Money Market Instruments

The new service plays into regulatory requirements that have emerged as part of SEC's prime fund reforms.

Thomson Reuters continues to build out its pricing service with the provision of intraday evaluated pricing for money market instruments which is updated throughout the day, Monday through Friday, for public and other non-public short-term instruments.

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The global information and media company says that the addition of continuous pricing updates, derived by Thomson Reuters Pricing Service (TRPS), is a response to customer demand for the ability to value portfolios on an ongoing basis, and to gain greater accuracy and transparency. Thomson Reuters Pricing Service (TRPS) already offers continuous evaluated pricing updates, 24 hours a day and five days a week, for over 2.6 million fixed income securities and derivatives.

The intraday service also plays into regulatory requirements that have emerged as part of the U.S. Securities and Exchange Commission’s (SEC) money market fund reforms. The new service offers mutual fund managers better insight into the value of investment and trading portfolios that are typically calculated using end-of-day pricing from the previous day. However, increased regulatory requirements are escalating the demand to drop this approach in order to make computations of net asset value, profit and loss more accurate by using intraday pricing.

According to Thomson Reuters, the extended offering comes while mutual fund companies continue to prepare for the October 14 deadline, when full implementation of the new SEC rules is required. At that point, prime money market funds will be required to publish net asset values based on the current value of the assets they hold. That is a big transformation for the industry and will mean a fund’s price will fluctuate along with market conditions.

Jayme Fagas, Global Head of Valuations and Transparency for Thomson Reuters, said: ‘‘The need for accurate and more-frequent valuations, enhanced investor disclosure and greater transparency continue to drive reform. With money market regulation at the top of the compliance agenda for many of our customers, we’re committed to staying one step ahead, delivering the extensive, high-quality and trusted evaluated pricing data they require to adhere to new rules with timeliness and confidence.’’

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