Bloomberg to Provide the Framework for Azerbaijan FX Market
Posted by Colin Lambert. Last updated: March 7, 2023
The Central Bank of Azerbaijan (CBA) has adopted Bloomberg’s FXGO solutions to provide electronic trading functionality for participants in the Azerbaijani FX and money markets. The offering includes market surveillance tools for the CBA, as well as BMatch, a solution for interbank trading in the local FX market, and a deposit trading solution.
Bloomberg says BMatch offers spot matching functionality to the interbank community for several locally traded currency crosses. It allows anonymous orders to be placed into a central limit order book, which are displayed and then matched with counterparty orders based on mutual trading limits configured by each bank.
FXGO also supports deposit trading by consolidating price contributions in the Azerbaijani manat and US dollar from local banks into a single view for pre-trade price discovery and analytics. From this screen, users can send RFQs to their counterparties and complete their deposit trade negotiations.
“The introduction of Bloomberg’s FXGO solutions played a vital role in our adoption of a new policy framework that requires an active interbank money market,” says Elrad Seydiyev, director of financial markets operations department of the Central Bank of Azerbaijan. “The deposit trading solution includes all the necessary features to revive the money market segment and Bmatch will improve the infrastructure of the interbank FX market, allowing banks to track supply and demand in real time and to trade multiple currency pairs efficiently. Overall, Bloomberg’s FXGO solutions will increase transparency and liquidity in local markets, which in turn, will enable us to implement our policies in a more efficient way.”
Tod Van Name, global head of FX electronic trading at Bloomberg, adds, “Markets need robust technical infrastructure solutions that are tailored to local market requirements, and our extensive experience in supporting foreign exchange and deposit trading in many countries around the world allows us to provide solutions that can readily be adapted to the needs and requirements of institutions such as the Central Bank.”