Bloomberg launches broker-dealer quotation transparency product for fixed income

New data license product aims to help market participants meet revised requirements resulting from the amendments to SEC Rule 15c2-11.

Following on from the ICE announcement we brought to you yesterday, Bloomberg also launched a similar offering in December – a quotation transparency product for broker-dealers operating in the fixed income markets.

The product will provide broker-dealers with information that can be integrated into their compliance program to help identify fixed income securities that may be impacted by the SEC Rule 15c2-11.

The amendments to SEC Rule 15c2-11, made in October 2020, require broker-dealers to review certain current and publicly available information about an issuer of a security not listed on a US exchange prior to initiating or resuming quotations for the security through a quotation medium.

The quotation transparency product provided by Bloomberg will offer attributes to broker-dealers which may help them to determine whether a security can still be quoted through an OTC quotation medium under SEC rules.

According to Bloomberg, the attributes can be integrated easily into a broker-dealer’s legal and compliance team’s own policies and procedures and were developed in response to market demand.

“Given the need to review information on a security not listed on a US exchange prior to initiating or resuming quotations, our clients approached us looking for a solution to this compliance challenge,” said Brad Foster, global head of enterprise data content at Bloomberg.

“Our breadth of data and detailed rule engines enabled us to deliver a solution, which assists client’s compliance and legal teams in determining which fixed income securities can or cannot be quoted. The architecture of this solution is highly flexible so that it can rapidly implement changes stemming from any future SEC guidance.”