Introducing the Confidence Score: Enhancing SOLVE Px™ for Municipal Bonds

In today’s fast-paced financial markets, accurate and reliable pricing is crucial for making informed decisions. SOLVE has taken a significant step forward by augmenting SOLVE Px™ for Municipal Bonds through introducing a Confidence Score. While starting with Munis, this functionality will be extended to other asset classes, starting with corporate bonds, later this year. This AI-powered metric quantifies pricing uncertainty on a scale of 1-10, with higher scores indicating greater confidence in price predictions. This innovative feature provides transparency and enhances the usability of SOLVE Px™ predictions, empowering traders to make more informed decisions across trading, risk, and analytics functions.

 

Value Proposition

The Confidence Score offers several key benefits that make it an invaluable addition to SOLVE Px™:

1. Assess Price Quality: The Confidence Score allows clients to gauge the reliability of SOLVE Px™ price predictions. This metric helps identify how much trust to place in each price, ensuring that clients can make decisions based on the most reliable data available.

2. Prioritize Data: By throttling the reliance placed on a particular predicted price based on this confidence metric, clients can more effectively allocate the weight or reliance placed on that predicted price, whether they are used to instruct trading levels or as inputs or guardrails to internal, proprietary models.

3. Support Risk & Compliance: The Confidence Score provides a quantifiable metric that can be used to justify pricing decisions. This added layer of insight strengthens client trust and supports defensible, data-driven decisions, particularly in trading and valuation workflows.

Use Cases

The Confidence Score is available for each side (Bid, Mid, and Offer) within various features of SOLVE Quotes™, including the Portfolio/Search Grid, Holders View, and Quotes Panel (Bid/Offer View and Detailed View). Additionally, it is available as a tooltip upon hovering over any SOLVE Px™ datapoint. This intuitive system enables users to quickly distinguish between varying levels of confidence in price predictions, facilitating more informed decision-making.

Moreover, the Confidence Score can be filtered by High, Medium, or Low confidence, as well as the Score itself (1-10), allowing clients to limit results to those with greater or lower SOLVE Px™ prediction confidence. This flexibility ensures that clients can tailor their analysis to their specific needs and preferences.

Integration with SOLVE Products

Regardless of the method traders choose to access SOLVE Px predictive pricing, they’ll have access to the Confidence Score. The Confidence Score is seamlessly integrated into various SOLVE products, enhancing their functionality and usability:

• In the SOLVE Quotes™ UI:

o Portfolio/Search Grid

o Holders View

o Quotes Panel (Bid/Offer View and Detailed View)

• SOLVE Px API Endpoints: The confidence Score field is included in the response for both the dynamic-by-c9 and historical-by-c9 endpoints for each Bid, Mid, and Offer price.

• SOLVE Px Excel Add-In Functions: A new attribute PxScore can now be retrieved for SPX and SPXH functions, available independently for Bid, Mid, and Offer sides.

• SOLVE Px Feeds: The SolvePxScore field is now delivered via SOLVE Px FTP and FIX feed products.

Conclusion

The introduction of the Confidence Score to SOLVE Quotes™ marks a significant advancement in the transparency and usability of SOLVE Px™ for Municipal Bonds. By providing a clear and quantifiable measure of pricing uncertainty, this AI-powered metric empowers clients to make more informed decisions, prioritize data, and support risk and compliance efforts. As financial markets continue to evolve, the Confidence Score ensures that SOLVE Px™ remains at the forefront of innovation, delivering reliable and actionable insights to clients.

About SOLVE

SOLVE is the leading market data platform provider for Fixed Income securities, trusted by sophisticated buy-side and sell-side firms worldwide. Founded in 2011, SOLVE leverages its AI-driven technology and deep industry expertise to offer unparalleled transparency into markets, reduce risk, and save hundreds of hours across front-office workflows. With the largest real-time datasets for Securitized Products, Municipal Bonds, Corporate Bonds, Syndicated Bank Loans, Convertible Bonds, CDS, and Private Credit, SOLVE empowers clients to transform the way they bring new securities to market, trade on secondary markets, and value highly illiquid securities. Headquartered in New York, with offices across the globe, SOLVE is the definitive source for market pricing in Fixed Income markets. For more information, visit https://solvefixedincome.com.