Press Release Summary:
SwapTrader platform, available via Bloomberg ProfessionalÂ® service, lets users customize swaps on live multi-dealer interest rate derivative platform. Effective and/or maturity dates of swap can be changed, creating structures that precisely match investment needs. Users can request quote from up to 3 dealers simultaneously and then execute trade at best quoted price. Completed trade is integrated with Swap Manager functionality for combination of execution and analytics.
Original Press Release:
Bloomberg Launches Swaps Customization
SwapTrader Adds Customization, Has Record-Breaking Volume, Adds Calyon to Platform
NEW YORK, April 11 / -- Bloomberg, the leading data, analytics and news provider, today announced that the Bloomberg SwapTrader platform, available via the BLOOMBERG PROFESSIONAL(R) service, now allows users to customize swaps on the multi-dealer interest rate derivative platform. Using SwapTrader, Bloomberg customers can change both the effective and/or maturity dates of the swap, creating structures that most precisely match their investment needs.
As with the standard tenors, a request for quote can be sent to up to 3 dealers. In addition, the completed trade is integrated with Bloomberg's Swap Manager (SWPM GO) functionality for a unique and seamless combination of execution and analytics.
"This development has been requested by end-money customers who have specific funding requirements and want to prove best execution in a multi-dealer trading platform," according to Russel Levi of Bloomberg.
Bloomberg SwapTrader, the first live multi-dealer request-for-quote ("RFQ") trading system for the interest rate swaps market, continues to be strengthened by the addition of liquidity providers. Calyon is the latest dealer to join the platform, bringing the total to 12 banks including ABN Amro, Bank of America, Barclays Capital, Calyon, Commerzbank, Credit Suisse, HSBC, JP Morgan, Merrill Lynch, Morgan Stanley, Royal Bank of Scotland and Societe Generale.
Continual product enhancements, together with increased depth of liquidity, contributed to a record-breaking one-week volume of $47 billion in swaps traded on Bloomberg SwapTrader during a single week in March 2006. In addition 27 new customers used the platform for the first time in March 2006. This record increase reflects the accelerating use of electronic trading of derivatives in 2006.
Currently the Bloomberg SwapTrader platform offers electronic trading in vanilla swaps denominated in US$ and Euro currencies via the function BBTI GO on the BLOOMBERG PROFESSIONAL service. Bloomberg SwapTrader operates on a request-for-quote ("RFQ") model. Bloomberg users are able to obtain pricing quotes simultaneously from up to three banks and then execute the trade seamlessly at the best quoted price. Using straight-through processing ("STP"), trade confirmation is handled electronically to improve efficiency and reduce the risk of pricing and trading error. Trade data is readily accessible to allow easy integration into a customer's settlement and risk management systems. Bloomberg SwapTrader is accessible to all Bloomberg users at BBTI GO on the BLOOMBERG PROFESSIONAL service.
Bloomberg, which launched the first multibank platform in interest rate derivatives, is the leader in providing bank-to-client electronic trading platforms. The BLOOMBERG PROFESSIONAL service is the most widely-used data, news and analytics platform for market professionals, making Bloomberg SwapTrader the ideal platform upon which to build the future of electronic derivatives trading.
Bloomberg is the leading global provider of data, news and analytics. The BLOOMBERG PROFESSIONAL(R) service and Bloomberg's media services provide real-time and archived financial and market data, pricing, trading, news and communications tools in a single, integrated package to corporations, news organizations, financial and legal professionals and individuals around the world. Bloomberg's media services include the global BLOOMBERG NEWS(R) service with more than 1,900 professionals in 125 bureaus worldwide; the BLOOMBERG TELEVISION(R) 24-hour business and financial network produced and distributed worldwide on ten separate channels in seven languages; and BLOOMBERG RADIO(SM) services which provide up-to-the-minute news on XM, Sirius and WorldSpace satellite radio around the world and on WBBR 1130AM in New York. In addition, Bloomberg publishes Bloomberg Markets(R) magazine and BLOOMBERG PRESS(R) books for investment professionals. For more information please visit http://www.bloomberg.com/.
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