Market data platform SOLVE has debuted its newest product: SOLVE Px, an AI predictive price dataset for the muni market.
The product is designed to give SOLVE’s customers visibility into “next-trade” pricing data for more than 900,000 munis.
SOLVE Px uses data from the SOLVE Quotes database — aggregated from chatter between market participants — and is based on an AI Prediction Model, re-trained daily to adjust to changing market conditions and powered by almost 300 feature inputs, a press release said.
SOLVE Px generates real-time predictive prices through real-time Quotes, trades and reference data, the release said.
“The idea is that you want to be able to look at CUSIP and see all available data set: Quotes data, trades data, predictor prices, along with easily being able to find comparable securities and the data sets,” said Eugene Grinberg, SOLVE founder and CEO.
SOLVE Px’s accuracy improves as the model optimizes itself to get as close as possible to the actual trade prints, he said.
SOLVE Px joins the firm’s slate of products, which give “the fixed income investment ecosystem access to insights that enable better trading decisions, including for municipal bonds that are infrequently quoted and traded,” a press release said.
In 2023, SOLVE launched a
SOLVE did a soft launch of the product late last year before releasing a
SOLVE Px has been accurate during its year-long testing period, bringing predictive accuracy, relative value and breadth of coverage to the firm’s customers, the release noted.
As SOLVE engaged with the early adopter clients, the firm developed a suite of data feeds and APIs so the clients can consume the data in bulk and feed it into their internal systems, Grinberg said.
“The idea is that we wanted to put the product in front of our customers and start collecting high-quality feedback in terms of the most useful way for them to consume the data [and] what type of tools they need,” he said.
The next two “big pushes” are to continue to build analytics around the product and expand to other asset classes, such as corporate bonds, Grinberg noted.
“We leveraged our deep muni market relationships as we developed our predictive pricing platform, sought industry feedback, and performed rigorous back-testing to ensure Px meets the high standards of our diverse client base. Our output, Px, is a unique platform that delivers predictive prices for the buy and sell sides and at the trade size that makes sense to our clients,” said Gregg Bienstock, group head of Municipal Markets at SOLVE, in a statement. ”This is just the beginning as we move to expand this offering with tools for relative value and as we move to other asset classes.”