Bloomberg has launched a new automated workflow for trading and reporting of Euro denominated interest rate swaps vs bond futures on Eurex.
The end-to-end workflow allows sell-side users acting as executing brokers to use straight through processing (STP) and facilitate a trade from a single interface.
Bloomberg said the no-touch submission and approval process would help futures commission merchants (FCMs) minimise operational risk and avoid historically “manual burdens” by meeting exchange-mandated reporting timelines more effectively.
The workflow is available for Euro denominated interest rate swaps spreads to Eurex bond futures contracts with plans for this to be extended to further products in the future including spreads versus cash instruments, and additional exchange connectivity.
The current offering is available on a matched maturity basis and versus spot benchmark tenors for interest rate swaps traded on venues operated by Bloomberg’s affiliated firms.
Nomura was the first dealer live on the new solution.
“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,” said Kilian Frensch, head of European interest rate swap trading 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.”
Bloomberg has made several improvements to its expanding automation capabilities in recent months as market demand for more efficient workflows continues.
In October last year, it launched a new front-office model that leverages machine learning to produce frequent pricing for real-time trading decisions.
IBVAL Front Office – separate to Bloomberg’s existing evaluated pricing service BVAL – consumes market data points from various sources, including TRACE, contributed quotes and trades, of which the data is fed through a proprietary machine learning model to offer intraday pricing spanning the liquidity spectrum.
“Increased electronification enables workflow optimisation and benefits our clients across the buy- and sell-side,” said Derek Kleinbauer, global head of fixed income and 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.”