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Abstract
Bloomberg has informed customers that it will discontinue its legacy Bloomberg Fair Value (BVF) bond pricing service from January 15 in favor of its Bloomberg Valuation (BVAL) evaluated pricing service for bonds, asset-backed securities and derivatives. Customers currently using Bloomberg Fair Value pricing will be required to sign new BVAL contracts, and move to the BVAL pricing model, which industry participants and end-users groups say is a "forced upgrade" that will lead to higher costs. Meanwhile, members of data user group the Information Providers User Group (Ipug) say the impact of the change from BFV to BVAL could be "significant" in real terms. An Ipug executive says Bloomberg officials have told clients that the vendor replaced BFV with BVAL after receiving demand from its terminal users for better quality pricing data.