J.J. Kenny Co. has signed an agreement with Bloomberg Financial Markets to provide municipal bond price quotes and other financial information via Bloomberg's global electronic news network, the municipal bond broker announced last week.
The agreement provides Bloomberg with a nonexclusive worldwide electronic distribution license, which will allow Bloomberg to distribute Kenny's proprietary municipal securities data to its 24,300 screen-based subscribers.
Bloomberg may be only the first outside electronic news network to distribute Kenny municipal information, which has in the past been largely prorietary. Kenny is discussing distribution proposals with several other vendors, said James R. Quandt, president and chief operating officer.
Through the agreement, Kenny wants to increase the amount of informationn available about the municipal market, especially to retail investors. A broader information flow should improve market liquidity and heighten activity, Quandt said.
"Just think of the regulators who are crying for more information. We hope this is the crossroads for that," Quandt said Friday.
"We're trying to make our information, [through] broad distribution, a much more important component of the municipal market."
Bloomberg subscribers will have direct access to selected municipal securities services and products compiled by three J.J. Kenny divisions. The Kenny Drake Trading Division prices municipal bonds in the secondary market, the Kenny S&P Information Services unit provides descriptive information on bond issues, and the Kenny S&P Evaluation Services unit prices portfolios of tax-exempt and taxable corporate and municipal securities.
Within 30 to 60 days, Bloomberg will begin carrying bonds offered for sale in the Kenny S&P Blue List, a daily listing of bonds held in dealer inventories. There also will be information available on blocks of bonds for sale, as well as price quotes.
Later Kenny hopes to add market commentary and analytical information, Quandt said.
The price of the Kenny data carried by Bloomberg has not been determined yet, Quandt said. Bloomberg subscribers will have to pay an additional fee to receive the information.
Previously, Bloomberg subscribers' principal access to Kenny municipal securities information has been the Kenny S&P Blue List. Trading information was available only through KennyWire and the McGraw-Hill Municipal screen.
"Through this dissemination agreement, we are gaining a major entree for our customers to the municipal securities business at a time of tremendous demand for these tax-free instruments for both retail and institutional investors," Michael R. Bloomberg president and founder of Bloomberg Financial Markets and Bloomberg Business News, said in a press release. "Bringing Bloomberg's analytics and graphics -- driven by Kenny data -- to Bloomberg's electronic network greatly enhances the quality of our offerings to this key market."
Quandt said the Bloomberg distribution pact will not result in competition for the McGraw-Hill screen.
"We think they're different audiences," he said, adding that users of the McGraw-Hill screen are "cutting-edge trading desks" and "consummate municipal professionals. We feel we're broadening our audience. We don't think this will limit growth of the McGraw-Hill screen."
J.J. Kenny, founded in 1949, was acquired by McGraw-Hill in 1990. Kenny's operations were combined with related products and services of Standard & Poor's Corp., also a McGraw-Hill company.
The Bloomberg financial information services company was founded in 1982. In addition to transmitting data, the system allows users to interact with the database, combining information from several sources on one topic.
Currently, Bloomberg through its own municipal system, reports municipal market news and bond offerings and provides access to research reports from rating agencies and financial companies.
Bloomberg and Kenny are nationally recognized repositories of municipal bond documents as designated by the Municipal Securities Rulemaking Board.
