Bloomberg Launches First Fully Automated Basis Trade and Reporting Workflow

New workflow provides frictionless reporting of Future vs. Interest Rate Swap basis trade

LONDON, Feb. 8, 2024 /PRNewswire/ -- Bloomberg today announced the launch of a fully automated electronic workflow for the trading and reporting of EUR Interest Rate Swap (IRS) v Bond Future contracts through Eurex.

This new end-to-end workflow allows sell-side participants acting as executing brokers to facilitate a trade using a single interface and benefit from full straight through processing (STP) using Bloomberg's technology.

Assisting Futures Commission Merchant's (FCM's) with a seamless no-touch submission and approval process enables market participants to meet exchange-mandated reporting timelines which minimizes operational risk and reduces the historically manual burden associated with basis trading.

The solution is currently available for Euro denominated IRS spreads to Eurex bond futures contracts on both a matched maturity basis and versus spot benchmark tenors for IRS traded on trading venues operated by Bloomberg's affiliates. The offering will, in due course, extend to cover spreads versus cash instruments, and additional exchange connectivity.

Will Baillie, product manager for European Electronic Rates at Nomura said: "We are happy to be the first dealer live on Bloomberg for EUR Swaps vs. Futures with a fully automated electronic solution. This new workflow offers significant benefits that help streamline the booking process. By reducing the operational burden it means we can service our clients in a more efficient manner."

Kilian Frensch, head of European Interest Rate Swap trading at Nomura said: "The support of EUR Swaps vs. futures on Bloomberg is part of a number of steps we are taking to enhance our electronic capabilities at Nomura. Building on a proven track record of innovation we are committed to growing a strong, consistent and wide ranging offering for our clients."

"Increased electronification enables workflow optimization and benefits our clients across the buy and sell-side," said Derek Kleinbauer, Global Head of Fixed Income & Equity E-Trading at Bloomberg. "We are committed to investing in new functionality to support clients' needs and look forward to continuing to build out this offering as it expands to include a wider range of instruments." 

Bloomberg Electronic Trading Solutions (ETS) are used by leading financial institutions to trade efficiently in over 175 markets around the world. More than 9000 client firms use Bloomberg ETS to access industry-leading depth and breadth of liquidity across asset classes from over 1,500 dealers globally. Bloomberg ETS provides market participants with comprehensive solutions across the trading lifecycle, including robust price transparency, analytics, automation and execution, powered by Bloomberg's high-quality, multi-asset class data and tools.

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SOURCE Bloomberg