The evaluated pricing landscape is undergoing a significant transformation, driven by technological advancement, regulatory updates, and investor demand for transparency. At the 3rd Annual LSEG Pricing Forum in New York City, industry leaders explored how emerging trends such as artificial intelligence (AI), market democratisation, and regulatory shifts are reshaping the space.
Among the core themes discussed was the growing role of AI. While AI holds potential for enhancing pricing models, especially through learning algorithms that improve over time, experts cautioned against relying on AI without proper controls.
Concerns were raised around the risk of flawed outputs, particularly during periods of extreme volatility, such as the market turbulence triggered by the 2025 global trade war. AI-generated pricing errors could lead to significant consequences, including misinformed capital holdings and faulty risk decisions, it said. Instead, some firms are currently applying AI in more controlled areas, such as automating responses to due diligence questionnaires and supporting operational processes.
Another key focus was the democratisation of private and loan markets. The rise of exchange-traded funds (ETFs) for AAA-rated collateralised loan obligations (CLOs) has opened the door for retail investors to participate in markets previously dominated by institutional players. However, the challenge of accurately pricing such assets remains.
The forum also addressed the evolving governance landscape under the US SEC’s Rule 2A-5. This rule mandates that fund boards retain ultimate responsibility for valuations but allows them to designate an investment advisor to oversee the process. This has led to the formation of dedicated non-board valuation committees, which are now playing a central role in vendor selection and oversight.
In response to these changing dynamics, LSEG Pricing Service is strengthening its partnerships with financial institutions. Through its collaboration with Dun & Bradstreet, LSEG is broadening access to private market data, including ownership structures and executive information. This data integration aims to support a more complete analysis for capital market participants, with a new data feed expected to launch soon.
LSEG is also actively supporting compliance with SEC Rule 2A-5 by offering a dedicated quarterly packet.
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