Bloomberg has rolled out a fully automated electronic workflow for the trading and reporting of EUR interest rate swap (IRS) v bond future contracts through Eurex.
The end-to-end workflow allows sell-side participants acting as executing brokers to facilitate a trade using a single interface and benefit from full straight through processing (STP). Nomura is the first dealer live on the new offering.
Derek Kleinbauer, global head of fixed income and equity e-trading at Bloomberg, said, “Increased electronification enables workflow optimisation and benefits our clients across the buy and sell-side.”
“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,” Kleinbauer said.
Assisting Futures Commission Merchants (FCMs) with a no-touch submission and approval process allows market participants to meet exchange-mandated reporting timelines, Bloomberg claims, minimising operational risk and cutting the manual burden often associated with basis trading.
The solution is currently available for Euro denominated IRS spreads to Eurex bond futures contracts on both a matched maturity basis and versus spot benchmark tenors for IRS traded on trading venues operated by Bloomberg’s affiliates. The offering is set to cover spreads versus cash instruments, and additional exchange connectivity, in due course.
Will Baillie, product manager for European electronic rates at Nomura, said: “This new workflow offers significant benefits that help streamline the booking process. By reducing the operational burden it means we can service our clients in a more efficient manner.”
Kilian Frensch, head of European interest rate swap trading at Nomura, said: “The support of EUR swaps v futures on Bloomberg is part of a number of steps we are taking to enhance our electronic capabilities at Nomura.”
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