Market data and trading technology vendor Bloomberg has expanded the FX Auctions functionality of the Bloomberg Professional terminal, it’s electronic trading, news and analytics platform, to include FX spots and forwards.
The addition of spots and forwards builds on the FX Deposits functionality introduced earlier this year. All ‘auction tickets’ generated by the FX Auctions service are accessed from the FX Execution Manager, Bloomberg’s central buy-side trading function.
Auction tickets, an extension of request-for-quotes tickets, allow users to request prices from multiple counterparties and take prices on various amounts over a period of time. This allows buy-side institutions to diversify counterparties by splitting large FX transactions between several brokers.
The function also benefits the sell-side, said Bloomberg, because it allows brokers to specify the maximum amount they wish to offer their buy-side customers.
Auction initiators can be specific or general about the amounts for which they are seeking bids and can opt to define details such as time parameters for receiving bids and concluding the auction.
“The flexibility of this format has led to its adoption by a wide range of users from asset managers and corporations to central banks,” said Philip Brittan, head of FX for Bloomberg, in a statement. “The Auctions can offer users considerable depth of liquidity from a wide range of sell-side firms.”