01 September 2015

Markit launches intraday net asset value service

03 June 2014  |  876 views  |  0 Source: Markit

Markit, a leading global diversified financial information services company, has launched an intraday net asset value (iNAV) service for exchange traded products (ETPs).

In addition to drawing on securities pricing data from global exchanges, the enhanced iNAV is underpinned by Markit's award winning fixed income evaluated pricing and fair value services.

The Markit iNAV is a fair value calculation that can be applied to over 5,100 global ETPs tracked by Markit. It is produced every 15 seconds and published to the major stock exchanges and market data platforms.

Mark Schaedel, managing director and head of data services at Markit said: "Our new iNAV service helps issuers provide greater pricing transparency amid increased regulatory scrutiny of ETPs. The integration of our evaluated pricing and fair value services provide the fuel necessary to enable continuous iNAV updates even when the underlying securities are illiquid or not trading."

Markit's fixed income evaluated pricing services are created using dealer contributions which provide independent pricing, transparency and liquidity data for over 2.3 million instruments. These include almost 90,000 corporate and sovereign bonds, 1.1 million municipal bonds as well as over 9,000 European and 1.2 million US securitised products.

Markit's fair value pricing data provides an independent, fully outsourced service that calculates the fair value of an ETF outside active trading hours using the correlation between 40,000 global equities, 80,000 global bond prices and over 30 market factors.

iNAVs are used by issuers to provide investors with a reference value that enables them to compare the tradable price against an evaluated fair value. Exchanges use iNAVs to ensure ETPs trade in line with the fair value of their underlying constituents. As the ETP market becomes increasingly sophisticated with products often featuring constituents that do not trade during market hours, iNAVs help bring transparency to ETP pricing. 

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