Bloomberg is continuing its push into China with the announcement that Haier Finance has adopted its FX electronic trading platform (FXGO) and Multi-Asset Risk System (MARS).
A subsidiary of the Chinese home appliance company Haier Group, Haier Finance provides financial services including deposits and loans, financial advisory, insurance and investment services. The firm officially adopted FXGO and MARS in the third quarter of 2016.
“Bloomberg’s FX solutions have enhanced our efficiency by allowing us to streamline our workflow from front to back,” says Zhang Bing, head of trading at Haier Finance. “On Bloomberg FXGO, we can access real-time executable pricing from multiple banks, click and trade various FX instruments on the best price provided, as well as the ability to demonstrate best execution for compliance and reporting purposes. Market transparency and efficiency is vital to the success of our FX business.”
“Haier Finance’s selection of Bloomberg’s FX solutions sets a new benchmark for corporate treasury in China,” says Tod Van Name, Bloomberg’s global head of FX and commodities electronic trading. “Against the backdrop of uncertain global economic outlook and increasing market volatility, corporate treasurers today are under greater pressure. Financial and corporate executives need better solutions to improve workflow, enhance efficiency and reduce costs. We are looking forward to more and more Chinese corporations and market makers collaborating on our FXGO platform.”
Speaking to Profit & Loss about Bloomberg’s growing engagement with firms in China, Van Name says: “China is an interesting opportunity, there’s lots of eyes on it, but it isn’t the easiest market to break into and the solutions needed there are going to be slightly different compared to other markets.”
He adds: “In most markets there is a voice market in which buyers and sellers can interact very freely, although in NDF markets there are sometimes controls around the currencies. But in China, the market is much more controlled and there is more potential for volumes, so firms going into this market need to be able to operate under the guidelines that have been established there.
“Because of the level of control that is required, and the fact that you have an onshore RMB and an offshore RMB market that keep moving closer together, firms also need to provide solutions that are nimble enough to keep pace with changes that might occur as the currency becomes more liberalised.”
According to Van Name, Bloomberg’s China strategy revolves around building strong relationships with both FX market participants and regulators in the country.
“They’re interested in working with firms who aren’t just looking for commercial profit, but also have community interests at heart and can introduce technology into this market in a way that makes it a positive experience for the local market makers, the regulatory authorities and the many rapidly growing companies in China,” he says.