Tag: Bloomberg

Bloomberg

Bloomberg: Handling a Sea of Change

“The biggest driver for the industry last year was regulation. It created a sea of change in the way that markets actually behave,” says Tod Van Name, global head of FX electronic trading at Bloomberg. MiFID II was obviously the major piece of regulation driving this change in 2018, but although this regulation only applied to firms operating in Europe, Van Name says it caused a much broader push globally to raise market transparency, track trade details, and justify all of the decisions made around trade execution. While it represented a big lift for many multi-dealer platforms, this was especially acute for a firm like Bloomberg, which offers such a wide array of securities and instruments that trade across many asset classes and to a diverse range of client types.

Bloomberg: Handling a Sea of Change

“The biggest driver for the industry last year was regulation. It created a sea of change in the way that markets actually behave,” says Tod Van Name, global head of FX electronic trading at Bloomberg. MiFID II was obviously the major piece of regulation driving this change in 2018, but although this regulation only applied to firms operating in Europe, Van Name says it caused a much broader push globally to raise market transparency, track trade details, and justify all of the decisions made around trade execution. While it represented a big lift for many multi-dealer platforms, this was especially acute for a firm like Bloomberg, which offers such a wide array of securities and instruments that trade across many asset classes and to a diverse range of client types.

Data Remains the Key Battleground for FX Platforms

Platform providers are becoming more conscious about the value of data, both for their businesses and their clients. Galen Stops takes a look at what this means for the FX industry.I f there is one consistent trend that emerges talking to all of the major OTC FX trading venues in 2019, it is that they’re all keen to emphasise the importance of data, both with regards to how they operate their businesses and how their clients operate theirs. On the one hand, FX trading venues are increasingly looking for ways to package and sell their market data, creating new revenue streams for the business. On the other, seemingly all of them are investing in developing trade analytics tools that will enable users of these platforms to derive greater insights from their trading activity and more effectively evaluate the liquidity and pricing available there.

Data Remains the Key Battleground for FX Platforms

Platform providers are becoming more conscious about the value of data, both for their businesses and their clients. Galen Stops takes a look at what this means for the FX industry.I f there is one consistent trend that emerges talking to all of the major OTC FX trading venues in 2019, it is that they’re all keen to emphasise the importance of data, both with regards to how they operate their businesses and how their clients operate theirs. On the one hand, FX trading venues are increasingly looking for ways to package and sell their market data, creating new revenue streams for the business. On the other, seemingly all of them are investing in developing trade analytics tools that will enable users of these platforms to derive greater insights from their trading activity and more effectively evaluate the liquidity and pricing available there.

Has FX Turned a Corner?

Now that MiFID II is in force and the industry has had time to digest the Global Code of Conduct, platform providers will face less distractions in 2019, says Galen Stops.In the second half of 2017 it seemed as though many FX market participants, on both the buy and sell sides, were forced to shelve any business plans that they might have as resources were diverted to help ensure compliance with MiFID II ahead of the deadline on January 3, 2018. Preparations for MiFID II cost an estimated $2.1bn in 2017 alone, according to a report by Expand, a Boston Consulting Group company, and IHS Markit, and this does not account for the amount of manpower and time that was also devoted to ensuring that everything was ready within these firms ahead of the deadline.

Has FX Turned a Corner?

Now that MiFID II is in force and the industry has had time to digest the Global Code of Conduct, platform providers will face less distractions in 2019, says Galen Stops.In the second half of 2017 it seemed as though many FX market participants, on both the buy and sell sides, were forced to shelve any business plans that they might have as resources were diverted to help ensure compliance with MiFID II ahead of the deadline on January 3, 2018. Preparations for MiFID II cost an estimated $2.1bn in 2017 alone, according to a report by Expand, a Boston Consulting Group company, and IHS Markit, and this does not account for the amount of manpower and time that was also devoted to ensuring that everything was ready within these firms ahead of the deadline.

JP Morgan Makes Algo Central Available Via Bloomberg

JP Morgan has made its execution services tool for FX algos, called Algo Central, available on the Bloomberg App Portal.Bloomberg Terminal subscribers globally can access the Bloomberg App Portal, so by making Algo Central available on the portal, JP Morgan is offering additional choice of where its clients can access its FX algo execution tools. Algo Central, previously only available via the JP Morgan Markets Execute platform, provides access to the firm’s pre-trade, real-time, and post-trade analytics and allows investors to manage multiple algo strategies simultaneously.Richard James, co-head of macro markets execution at JP Morgan, says:

FX Volumes on SEFs Up In January

The average daily volume (ADV) of spot FX traded on Swap Execution Facilities (SEFs) in January was $61.2 billion, up month-on-month from $49.8 billion and up 5.5% from $58 billion in January 2018.This represents the third highest month of ADV ever, behind June and March 2018, when the platforms registered a total of $62.9 billion and $61.3 billion, respectively. Tullett Prebon’s SEF saw the most FX volume, with an ADV of $15.8 billion going through its platform last month. The next biggest by volume was the BGC SEF, which recorded an ADV of $12.4 billion in FX, followed by Tradition and GFI, which both recorded $9.4 billion.

RMB Securities Added to Bloomberg Indices

Chinese RMB-denominated government and policy bank securities are set to be added to the Bloomberg Barclays Global Aggregate Index.The inclusion in the index will start in April 2019 and be phased in over a 20 month period.When fully accounted for in the Global Aggregate Index, local currency Chinese bonds will be the fourth largest currency component following the USD, EUR and JPY. Using data as of January 24, 2019 the index would include 363 Chinese securities and represent 6.03% of a $54.07 trillion index upon completion of the phase-in

Shell Adopts New Bloomberg Treasury Service

Shell’s Foreign Exchange Central Treasury business has implemented a Bloomberg service that connects its subsidiaries globally.

The solution is now available for use by any corporate treasury operation in the world, Bloomberg announced today.

The new technology was built by Bloomberg in collaboration with Shell and connects the company’s central treasury office directly to its 718 operating units in 22 countries, so they can quickly and electronically exchange information. The functionality aims to help Shell manage its group risk with more than 200 distinct bank counterparties via the Bloomberg Terminal.