Bloomberg Launches Price Transparency Data Solution Targeting SEC Rule 2a-5

Anna Lyudvig

Bloomberg had launched a new Price Transparency Data Solution aimed at helping clients tackle the regulatory challenges presented by SEC Rule 2a-5’s requirements for readily available market quotations. 

This data solution is powered by BVAL, Bloomberg’s evaluated pricing service, and is part of a growing portfolio of data points helping clients further understand the nature, composition and depth of BVAL prices.

These new Bloomberg Data License fields provide inputs to help clients assess and apply new SEC Rule 2a-5’s requirements for readily available market quotations. 

Stephanie Sparvero

The compliance date for new SEC Rule 2a-5 is September 8, 2022, and the requirements are part of a broader regulatory trend around pricing transparency and valuation oversight.

“Having a detailed framework for fair value is a continuation of the long journey for the industry for making valuations easier and more accessible across the board,” said Stephanie Sparvero, Global Head of Bloomberg’s Evaluated Pricing service, BVAL. 

“BVAL utilizes innovative data validation and cleansing techniques to achieve greater precision in the valuation of securities. Our rigorous system of data controls, market driven pricing models, and team of evaluators all contribute to the quality of our evaluated prices,  and the additional information we provide regarding underlying market data for BVAL will now also assist users in assessing information relevant to Rule 2a-5’s requirements.”

Bloomberg provides granular 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. Bloomberg’s new data solution uses this data to deliver a robust set of indicators to help users in their assessment of their obligations under SEC Rule 2a-5. 

Users can automatically generate reports that help visualize various parameters of their portfolio, such as quotation age or the readily available flag. 

“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,” said Brad Foster, Global Head of Enterprise Data Content at Bloomberg. 

Brad Foster

“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 adapt to this rule’s requirements for readily available market quotations,” he added.

This regulatory solution is available to BVAL customers who may need to integrate it into their compliance workflows. 

Clients will have the option to obtain this data per security or as part of a bulk subscription for the entire security universe.

Bloomberg’s Enterprise Data business produces high-quality pricing, reference and regulatory datasets, real-time market, event and news data, and liquidity analytics along with data management and distribution technologies.