Interactive Data Prepares Real-Time Fair Value Service

Interactive Data has announced that its Real-Time Fair Value Information Service will be available sometime in Q2 this year.

The service will provide real-time evaluated prices for more than 15,000 international equities throughout the day. According to Interactive Data, these streaming evaluated prices reflect an independent opinion of international equity prices that would likely prevail following the close of local markets.

The Real-Time Fair Value Information Service will also be offered as a premium input to the company's Basket Calculation Service, which provides intra-day indicative values (IIVs) for exchange-traded structures and values for market indices.

This will enable exchange traded fund (ETF) sponsors and index providers to offer the investment community fair-value-adjusted IIVs throughout the day.
Other market participants, including market makers, authorized participants (APs) and traders, can utilize real-time fair-value information as an additional reference point to form their opinions of value and support trading activity, the creation/redemption decision-making process, and risk management.

Liz Duggan, managing director, global evaluations for Interactive Data, says the new service will benefit multiple market segments from ETF sponsors monitoring the behavior of their ETFs to APs and other investors estimating basket values to inform creation/redemption and trading decisions.