Bloomberg Claims Basis Trade Reporting First
Posted by Colin Lambert. Last updated: February 8, 2024
Bloomberg has launched what it says is the first fully-automated workflow for the trading and reporting of basis trades between EUR interest rates swaps and bond futures through Eurex.
Bloomberg says the workflow allows sell-side participants acting as executing brokers to facilitate a trade using a single interface and benefit from full STP using its technology. It adds that assisting Futures Commission Merchant’s (FCM’s) with a seamless no-touch submission and approval process enables market participants to meet exchange-mandated reporting timelines thus minimising operational risk and reducing the historically manual burden 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 will, in due course, extend to cover spreads versus cash instruments, and additional exchange connectivity, the firm says.
“We are happy to be the first dealer live on Bloomberg for EUR Swaps vs. Futures with a fully automated electronic solution,” says Will Baillie, product manager for European electronic Rates at Nomura. “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.”
“Increased electronification enables workflow optimisation and benefits our clients across the buy and sell-side,” adds Derek Kleinbauer, global head of fixed income & 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.”