Bloomberg FX fixing rates (BFIX) will be added to the NEX eFix Matching Service, which enables customers to execute fixing interest electronically via the EBS Market platform, the firms have announced.
The eFix Matching service was launched in 2014 as a central market utility for reducing benchmark fixing risk, NEX says that it has seen a growth of 25 percent API to 65 percent API execution since 2014, driven by the continued trend towards automation and a shift in the way banks manage client fixing orders.
The BFIX benchmark is used by market participants as a fix for portfolio benchmarking, derivatives valuation, index construction, and trade execution and is aligned with the International Organization of Securities Commissions’ (IOSCO) principles for financial benchmarks.
BFIX is being launched on eFix Matching in stages, with the first 10 rates, including the 13:00 and 16:00 rate sets, being live as of 21 May. NEX says it is adding the rates to its service, “…in response to specific customer needs as market participants look to have a more holistic view of managing benchmark risk.”
“eFix Matching was launched as a direct response to the Financial Stability Board recommending a solution to ensure robust fix execution, and from that time we have operated in answer to market needs, whether through the addition of new fixings or development of new features within the service,” says Seth Johnson, CEO of NEX Markets. “We’ve seen significant demand for BFIX and are thrilled to bring the rates onto our service, continuing our aim to provide benchmarks wherever our client base has a requirement to reduce fixing risk.”
Colin Gallagher, Bloomberg’s head of foreign exchange analytics, adds, “BFIX has gained wide acceptance globally and we are excited about offering the rates in eFix matching. This will provide users of BFIX with a market recognized risk mitigation tool and reinforces our commitment to deliver a best-in-class FX Benchmark.”