ICE Data Services acquires Kalotay Analytics
ICE Data Services Acquires Andrew Kalotay Associates to Improve Fixed Income Analytics, Integrating Kalotay Proprietary Software with ICE’s Data, Analytics and Execution Services Network for Municipal Bonds and Other Securities fixed income.
Kalotay Analytics has provided high-speed, high-precision software to players in the fixed income market for more than three decades. It includes real-time quantitative pricing of exchange-traded bond funds to instant portfolio analysis of mortgage-backed securities for risk managers as well as several municipal securities tools.
âThe integration of Kalotay Analytics is part of our broader strategy to strengthen the municipal market with more data, more tools and more analytics,â said Pierce Lord, Director of Income Securities Analysis fixed at ICE Data Services.
Lord said the acquisition is a continuation of ICE’s expansion into the municipal space.
Kalotay’s MuniCycle product enables issuers, advisers and underwriters to analyze proposed transactions, providing participants with option-based analysis for current redemptions and structuring of new issues with different coupons and call protection periods. . It offers comparisons of yield curves, structuring and repayment analyzes.
“We believe that the depth and expertise of Kalotay Analytics, along with ICE’s current analytics activities and distribution network, will lead to greater market adoption of these innovations in the mun space.” Lord said.
The merger will bring several benefits as ICE provides a network of data, analysis and execution services for municipal bonds and other fixed income securities, the companies said.
The Kalotay Analytics team will be placed under the umbrella of ICE.
Relationships with current Kalotay Analytics customers will remain in place as part of the acquisition.
âThe growing demand for real-time price and risk calculations makes Kalotay Analytics an ideal solution for ICE,â said Andrew Kalotay, Founder and Chairman of Andrew Kalotay Associates. our analyzes on fixed income securities. We can now go further under the aegis of ICE. “
Municipal analyzes are difficult, Lord said, and the speed at which Kalotay’s products work is good for the market.
âKalotay Analytics’ proprietary software can perform tens of thousands of calculations in seconds,â he said. âThis speed is very powerful for the front office.
“His fixed income analyzes are a bit ahead of their time and we appreciate this innovation.”
ICE has grown its footprint in the municipal space over the past few years, from expanding its municipal scales to acquiring stakes in other municipal bond companies to launching social impact scores.