Balancing sell side dealers with pricing and valuation services, analysts, counsel, and tech platforms, the Bond Dealers of America (BDA) announces the formation of the Division, Bond Pricing Institute.
This Division launched early 2022 within the BDA to bring together and represent diverse professionals engaged in the work of pricing evaluations of fixed-income securities for investors, funds, broker-dealers, insurance companies and others.
With the purpose of benefiting investors – both retail and institutional – in the form of more accurate, transparent and fair valuations of fixed-income securities.
BPI provides a menu of services to member professionals and companies, including:
- Federal Advocacy – Providing direct representation for Pricing and Valuation Firms
- Direct Participation in developing and maintaining Industry Best Practices
- Events and Webinars
- Research & Surveys
- Industry Resources Handbook
We Focus On
- Communication, education, networking and awareness as scrutiny by regulators (globally) increases for pricing and valuation providers
- Representation and advocacy for this important segment of the fixed income markets – especially as the SEC and others focus on overall bond market structure
- Investors benefit from collaborative efforts to improve securities pricing and valuations
Issues
Regulatory
- SEC Rule 15c2-11 SEC
- Fair Value Rule 2a-5
- Compliance with accounting Levels 1-3
- PCAOB scrutiny of broker quotes
Business/Market Structure
- Market liquidity
- Electronification of market and transparency of pricing
- Public to private market trends
- Reference price for best ex – retail versus institutional markets
Structure and What We Do
Executive Committee
The Bond Pricing Institute will be led by an Executive Committee of 5 to 9 individuals representing the different members of the Division, and including at least one BDA Board member from a sell-side dealer.
Meetings
The Division will meet virtually or in-person on a quarterly basis or as needed. Meetings will be tied to BDA events when possible – example is an in-person Division meeting correlated with the BDA annual FI conference.
2022 BPI Program
| Day/Month | Event |
|---|---|
| 31 March | BPI Benchmark Webinar Fixed income trade price reporting and transparency – current status, business and regulatory trends. |
| 7-8 April | The BDA’s National Municipal Bond Conference (Dallas, TX) BPI session on muni pricing |
| 18 May | BPI Webinar: Content TBD in consultation with SC |
| June | BPI Handbook Launch |
| 21 July | BDA Institutional Fixed Income Roundtable (Dallas, TX) |
| August | BPI Research Paper/Survey: Content TBD in consultation with SC |
| 7 September | BPI Webinar: Content TBD in consultation with SC |
| 5 October | BPI Webinar: Content TBD in consultation with SC |
| 3-4 November | The BDA’s National Fixed Income Conference (Charlotte, NC) BPI Annual Meeting / workstream on bond pricing |