Bloomberg Expands HQLA Solution to Middle East as International Banks Increase Presence in Region

The HQLA solution helps monitor bank liquidity requirements under Basel III and now includes local rules for the United Arab Emirates (UAE) and Qatar

NEW YORK, June 2, 2025 /PRNewswire/ -- Bloomberg today announced the release of their High-Quality Liquid Assets (HQLA) solution in the Middle East, expanding a Basel III regulatory data solution to the region and equipping financial institutions to monitor liquidity requirements in accordance with the Central Bank of the United Arab Emirates (UAE) Rulebook and the Qatar Central Bank's prudential regulations.

One of the key reforms introduced by Basel III, the Liquidity Coverage Ratio (LCR), requires financial institutions to hold an adequate amount of unencumbered High-Quality Liquid Assets (HQLA) that can be converted easily and immediately into cash. The Basel LCR framework has been transcribed into each jurisdiction's national law in different ways, requiring a bespoke and customized solution for each jurisdiction to help banks identify asset classes eligible for inclusion in the HQLA.

"As international banks expand into the Middle East, they are looking to Bloomberg as their trusted regulatory data partner to establish strong compliance processes with the local regulatory regime," said Leila Sadiq, Global Head of Enterprise Data Content at Bloomberg. "With this expansion, Bloomberg brings our robust HQLA data set and best in class reference data to Middle East jurisdictions to help all financial institutions including local banks, hedge funds and private banks in addition to international banks meet local liquidity and regulatory requirements."

Bloomberg's HQLA solution now covers 12 jurisdictions and offers a set of data points to assist clients in complying with Basel III's LCR requirements and regulatory reporting. This data, which firms can also use for calculating their standardized credit risk capital requirements, consists of 4 main data sets:

• HQLA Classification - 33 security-level data points including the level of eligibility for different jurisdictions, Organisation for Economic Co-operation and Development (OECD) classifications and standardized risk weight.
  
  
• 30-day Stress Period Price Drop Metrics - Five data points providing the most recent single largest 30 calendar day price drop over relevant stress periods (under two methodologies).
  
  
• Liquid & Readily Marketable - 19 data points to assist clients in determining if fixed income securities are liquid and readily marketable.
  
  
• Central Bank Eligibility - Three data points to assist in determining if a security is accepted as eligible collateral by 14 major global central banks, together with the corresponding haircut values.

HQLA is a high quality dataset available to bank treasurers, traders, regulatory reporting managers, risk officers and investment professionals via the Bloomberg Terminal as well as through an enterprise data feed. It was developed with input from regulators and industry experts in order to assure the precision and accuracy of the classifications provided.

The HQLA solution is part of Bloomberg's Regulatory and Accounting Product suite, which helps professionals at banks, asset managers, insurers and other financial organizations navigate an increasingly complex regulatory and accounting disclosure environment.

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SOURCE Bloomberg