Bloomberg has launched a price transparency data solution aimed at helping clients tackle the regulatory challenges presented by The U.S. Securities and Exchange Commission (SEC’s) Rule 2a-5 which is set to be implemented on 8 September 2022.
The Rule 2a-5 requirements are part of a broader regulatory trend around pricing transparency and valuation oversight.
Bloomberg’s new data solution will use relevant data to help users in their assessment of their obligations under the upcoming SEC rule, utilising the Bloomberg Valuation Service (BVAL), Bloomberg’s evaluated pricing service.
The BVAL is part of a growing portfolio of data points helping clients further understand the nature, composition and depth of BVAL prices.
Bloomberg provides information on the underlying market data behind BVAL prices, such as the volume, age and type of quotes and trades.
This data helps users to understand and assess the composition and nature of each and every price and may have a variety of compliance, regulatory and accounting use cases.
Through Bloomberg’s new data solution, users can automatically generate reports that help to visualise selected parameters of their portfolio, such as quotation age or the readily available flag.
The regulatory solution is available to BVAL customers who may need to integrate this into their compliance workflows.
Brad Foster, global head of enterprise data content at Bloomberg, adds: “Given the need to understand in detail what is behind a price, clients approached us seeking a solution to navigate compliance with Rule 2a-5. BVAL’s comprehensive price transparency data fields and our detailed rule engines enabled us to design a data solution to help clients’ compliance and legal teams to adapt to this rule’s requirements for readily available market quotations.”
