Bloomberg has added a new suite of FX pricing quality tools in a bid to enhance RFQ pricing requests.
The tools are available to clients of its premier multi-bank FX trading platform, FXGO, through MISX – Bloomberg’s multi-asset reporting tool for electronic trading.
With this enhancement, users are able to analyse pricing quality and performance for any RFQ pricing requests sent over FXGO, including batch trades.
Bloomberg describes the tools as allowing users to have a “complete picture as to where counterparty pricing quality is consistently superior as well as where and with whom pricing quality needs to improve,” effectively identifying where and why opportunities to price are being missed.
Specifically, price takers can use MISX Price Quality Analytics to understand how often a counterparty either priced and won trades, were runner up (“best alternative” price), or placed somewhere in the pack.
In addition, price takers can use the tools to measure when and how often counterparties declined to price, when requests were not picked up, or when requests to deal were rejected.
Through these enhancements “price makers can better understand how and where to improve their setup and pricing quality to win more business over FXGO”.
Reasons for opportunities being missed can include: internal counterparty setup, enablement issues, or internal credit rejects.
Tod Van Name, global head of foreign exchange electronic trading at Bloomberg highlighted the importance of transparency and availability of real time information for their clients’ trading operations, added: “These new Pricing Quality Analytics in MISX provide both buy and sell-side market participants with unparalleled breadth and depth of analysis and output, that can help them make more informed trading decisions and achieve better outcomes.”
Currently FXGO provides streaming or RFQ for spot, swaps, deposits, NDFs, outrights and options in any currency pair and tenor. It also offers algorithmic order solutions as well as integrating with multiple third-party order management, accounting systems, and treasury management. In addition, it facilitates straight-through processing (STP) through a range of flexible formats.
Guillaume Carreno, global head of electronic client connectivity at Crédit Agricole CIB, said: “The additional information, especially the “Best Alternative” data, has enabled us to identify areas where we can further improve the pricing quality for our clients. The productivity efficiency we gain with this new feature is an important added value.”