Bank of China Hong Kong Automates IRS Trading with TOMS
Posted by Colin Lambert. Last updated: September 27, 2023
Bloomberg says that Bank of China (Hong Kong) has commenced using its Trade Order Management System (TOMS) for its interest rate swap (IRS) market making business, and to help offshore investors hedge currency and interest rate exposure.
The firm says the adoption will enhance the bank’s pricing, automation and execution workflow, and is expected to accelerate the electronic trading of Hong Kong dollar and Chinese renminbi among offshore dealers and buy-side firms in Hong Kong.
“Following our positive experience using Bloomberg TOMS for our Bond Connect fixed income trading, it was natural for us to extend the use of the system to electronify our IRS market making business,” explains Chengdong Zhang, chief dealer of global markets, at the bank. “With the aid of the enhanced pricing tool and our leading position in the market, BOCHK is able to offer transparent and competitive price to help offshore investors hedge their currency and interest rate exposure.
“With the continued internationalisation of the RMB, investors are increasingly relying on IRS traded through Hong Kong to manage their interest rate risks” he continues. “Bloomberg’s advanced technology solutions, along with its seamless workflows and extensive community of market participants will bring further operational efficiencies to our market making business and accelerate the growth of Hong Kong’s IRS market.”
Dahai Wang, head of Greater China at Bloomberg, adds, “The benefits of moving towards a digitised IRS workflow are clear, as it provides participants across the market with access to a better pricing and execution experience.”