Charles Schwab Investment Management and WisdomTree Asset Management are the first exchange-traded fund (ETF) issuers to use Virtu Financial's new eNAV ETF analytics tool, which features MarketAxess’ Composite+ pricing engine.
Rolled-out in Q1, Virtu’s eNAV ETF analytics tool promises to provide real-time transparency for ETF valuations by calculating the bid and ask prices of ETFs based on their underlying components and proxy assets.
Coverage includes US-listed ETFs with domestic and international equities, commodity and fixed income holdings.
Since H1, eNav also features Composite+, an artificial intelligence-powered algorithmic pricing engine for corporate and emerging market bonds.
It combines both public (US Trace) and proprietary MarketAxess data to produce an unbiased, two-sided market for more than 28,000 instruments globally.
The engine is updated at least every minute, or more frequently for more liquid instruments, and generates nearly 30 million levels per day covering between 90-95 percent of trading activity in its markets.
Chris Concannon, president and COO of MarketAxess, said: “As institutional investors increasingly adopt ETFs as portfolio tools, real-time portfolio pricing will be essential for execution efficiency.”
Meanwhile, Virtu’s eNAV supports a variety of trading functions including pre-trade price discovery and execution consultation, liquidity provision, post-trade transaction cost analysis, auto-execution and crossing.
“We are excited that major ETF issuers understand and value the many benefits eNAV delivers,” said Douglas Cifu, co-founder and CEO of Virtu Financial. “By joining forces with MarketAxess we are empowering issuers to better understand market value and reliably monitor their ETFs in support of high-quality and efficient execution by their investors.
"As long-time advocates for transparency, we believe eNAV will provide even greater clarity in ETF secondary market pricing and become the industry standard.”
