Part One
Unlocking Value Through Independent Pricing in Fixed Income ETFs
ETFs Under Stress
The ETF has come of age in fixed income. Once viewed with caution, ETFs are now recognised as reliable vehicles for liquidity and price discovery - even in volatile conditions.
Our survey highlights this change in sentiment, with 73% of respondents revealing they are moderately confident, and a further 15% very confident, in ETFs’ ability to provide liquidity and price discovery during periods of market stress.
Only a small minority expressed neutrality, and none reported low confidence.
This marks a decisive break from earlier debates about ETF resilience. For many buy-side leaders, ETFs are no longer peripheral instruments but core components of liquidity management strategies, valued for their ability to provide transparency and stability when traditional markets are most challenged.
During periods of market stress, how confident are you in fixed income ETFs as a tool for liquidity and price discovery?
Very confident (effective liquidity & pricing)
Moderately confident (some concerns remain)
Neutral
Low confidence (prefer direct bond market access)
The Value of Independent Pricing
Independent pricing is now central to ETF investment decisions. Nearly four out of five respondents rated third-party pricing and liquidity analytics as valuable, while none dismissed their relevance.
This highlights a decisive shift: buy-side desks increasingly expect unbiased, external benchmarks to support decision-making and demonstrate best execution. What was once a secondary input is now a core part of governance, risk management, and client assurance.
Nathan Kirk, Managing Director - Pricing, Valuations & Reference Data, S&P Global Market Intelligence
"Independent pricing and liquidity analytics are invaluable in supporting fixed income ETF investment decisions by providing real-time, accurate assessments of market conditions and risk factors. These analytics enable investors to adapt their strategies swiftly to evolving market dynamics, ensuring compliance and enhancing transparency while meeting client-specific demands for customized pricing solutions."
The importance of Independent Pricing in the Ecosystem
Independent pricing is not just a helpful add-on - it is becoming a foundational element of trading infrastructure.
Seventy percent of respondents said high-quality, third-party pricing is important, with a further 14% calling it critical. Only 1% said it was not important.
This overwhelming consensus shows that buy-side firms want transparent, independent data hardwired into their trading ecosystems. From system design to execution monitoring, unbiased benchmarks are now viewed as essential to proving best execution, ensuring regulatory compliance, and managing reputational risk.
As fixed income trading becomes more electronic and data-driven, the expectation is clear: independent pricing is part of the core architecture, not a luxury.
How important is independent, high-quality pricing and liquidity analytics (e.g. from S&P Global) when setting up your Fixed Income Trading ecosystem?
Karthick Chandrasekaran, Executive Director, Pricing, Valuations & Reference data, S&P Global Market Intelligence
"Access to reliable pricing data helps to facilitate better execution strategies, improve transparency and enhances operational efficiency throughout the trading lifecycle; including being used for benchmarking and trade confirmation."
Looking Ahead: How Innovation Will Shape Pricing
While the survey results clearly show the value and importance buy-side leaders place on independent pricing and liquidity analytics, the numbers only tell part of the story.
To understand how these priorities are evolving in practice, we also asked respondents to explain in their own words how advancements in electronic and portfolio trading will shape pricing requirements over the next 2–3 years.
Their views converge on five themes: automation and AI, deeper analytics, risk and compliance, global integration, and rising client demands.
Together, the responses show how fixed income pricing must adapt to an increasingly electronic and data-driven market. We have compiled some of their responses into each of these main themes to provide deeper insight.
Karthick Chandrasekaran, Executive Director, Pricing, Valuations & Reference data, S&P Global Market Intelligence
"The increasing interdependence with derivatives markets will require pricing models to integrate signals from swaps and options, as well as cross-asset correlation checks. Pricing systems must be flexible enough to quickly adapt to market changes and scalable to handle the increased volume of transactions."
