Bonds

SOLVE launches AI predictive dataset

SOLVE, a market data platform, has announced the beta version of SOLVE Px, an AI predictive dataset for the muni market.

The platform offers next-trade prices for more than 900,000 munis, including those that are traded infrequently.

The goal behind SOLVE’s new product is to turn raw data into data-driven insights through AI, with munis being the first step before expanding to other key asset classes in fixed income, said Eugene Grinberg, co-founder and CEO of SOLVE.

SOLVE collects the day’s offers and trade color from market participants and is able to digitize the “communication stream” through its proprietary technology, extracting millions of quotes a day across all asset classes, he said.

“The data is extremely valuable to market participants,” Grinberg said. While the quotes data has some limitations, such as pricings for infrequently traded and less liquid bonds, and even for bonds that receive a lot of quotes, there’s the fractured nature of data where bonds can be quoted by different banks, he said.

“The point of this new data set is to fill some of these gaps,” he said.

SOLVE Px is the latest development from the market data platform, said Eugene Grinberg, co-founder and CEO of SOLVE.

SOLVE takes the data it receives, including reference and trade data, and uses AI to create a predictive pricing for almost the entire asset class, according to Grinberg.

Even for bonds that have not traded recently or do not have quotes, “given company’s historical relationships that you train the model on, it is able to come up with a predictive pricing for close to every municipal bond in the market,” he said.

SOLVE has already employed AI in its pricing data that it gives to financial institutions daily. It will now provide those organizations with another level of transparency, he said.

SOLVE Px is the latest development from the market data platform.

In 2023, it launched a platform that provides market professionals information through the aggregation, curation and delivery of available historical and real-time fixed-income data, and a public finance workflow solution that shows historical scales for all muni deals.

The firm did a soft launch of the product in December before releasing a beta version in January.

During the beta testing, SOLVE is receiving client input, and the initial feedback has been positive, he said.

Over the next several months, other features will be incorporated based on client feedback.

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