The Bloomberg Professional service supports all aspects of the pre- and post-trade workflow for derivatives market participants. It uses industry-standard models to calculate specific risk factors such as rates, spots, and volatility for each asset class. These include the local volatility, stochastic volatility, stochastic local volatility, one-factor Hull White, two-factor Hull White, and Libor market with displaced diffusion. Bloomberg also offers the Monte Carlo pricing method.
Bloomberg’s cross-asset derivatives platform covers
a wide range of instruments from vanilla to exotic products, including
structured products and strategies.
Bloomberg provides pricing data for most traded
instruments in the market, including futures, swaps and options and uses a wide
variety of data sources, including data contributed by banks and brokers.
In 2014, innovations to Bloomberg’s multi-asset class analytics and trading platforms will include enhancements to the functionality for credit valuation adjustments, fair value cross-asset portfolio exposure and hedge effectiveness. Enhancements to Bloomberg’s multi-asset portfolio risk management, stress testing and scenario analysis tools will offer deeper integration with existing pricing models, data sets and idea generation analytics. Bloomberg will also release a new, flexible hybrid structuring tool for equity, foreign exchange and interest rate derivatives and structured products.