Bloomberg Index Services has today unveiled its Bloomberg FX Fixings (BFIX) offering, the first benchmark on a value T+1 basis in the market.
The service will allow users to send FX orders into executing counterparts without being present in the time zone in question.
Though sell-side banks offer this service via their forwards desk, the BFIX T+1 benchmark allows for a minimised impact on banks’ credit facilities when done at scale, according to Bloomberg.
“While sell-side banks can currently offer this service through forwards desks on a T+1 basis taking opposite risk from the spot desk on a T+2 basis, the forwards desk inherits a tom next FX swap which may ultimately impact banks’ credit facilities when done in sizable volumes,” said Bloomberg.
The initial launch extends to 20 deliverable currencies globally, including USD, GBP, HKD, EUR, and JPY among others.
Client auto-routing ticketing is set to be facilitated by Bloomberg FXGO and users have been directed to reach out for details on how to route a new BFIX T+1 order.
“With extensive use of BFIX in currency derivative products, accurate date alignment and a stable window environment for bank execution, BFIX is now a well-established FX benchmark clients rely on globally and BFIX T+1 is a natural evolution to our offering,” said Colin Gallagher, BFIX benchmark and currency indices product manager at Bloomberg Index Services.