Bloomberg executives announced the industry’s first integration between a foreign exchange (FX) trading platform and a clearinghouse for clearing of non-deliverable forwards (NDFs). The connectivity was established to prepare for the mandatory clearing of over-the-counter (OTC) derivatives traded on swap execution facilities (SEFs).
The NDF trades were electronically executed via Bloomberg’s Foreign Exchange platform FXGO, available on the Bloomberg Professional service. Bloomberg clients traded over FXGO and the transactions were cleared through clearing brokers at CME Group. Bloomberg intends to register with the U.S. Commodity Futures Trading Commission (CFTC) as a SEF.
“These trades are a clear signal to our customers, especially buy-side firms, that we are ready, willing and able to help them comply with any upcoming regulations,” said Tod Van Name, global head of Bloomberg’s FX business. “Our strong base of NDF liquidity providers on FXGO and our voice confirmation system (VCON) means clients will have a single, seamless system for OTC derivatives trading ready whenever they need it.”
Michael O’Connell, CME Clearing’s Managing Director, said, “As the leading clearinghouse for straight through processing (STP) of OTC derivatives, CME’s open standard API has helped platforms such as Bloomberg send trades directly to a CCP, thereby facilitating scalable OTC-cleared trading. We look forward to developing standard trade processes and enhancing our OTC offering, especially since FX is a growing market.”
Bloomberg FXGO provides a commission-free electronic trading platform for counterparties to execute spot, outright, swap, NDF, deposit and option transactions. Subscribers to the Bloomberg Professional service, the leading platform for business and financial professionals, can access Bloomberg FXGO by typing {FXGO}.
CFTC votes in favor of exchange traded swaps.
NDF currencies include:
| Asia Pacific | Europe, Middle East and Africa | Latin America |
| CNY Chinese Renminbi IDR Indonesian Rupiah INR Indian Rupee KRW South Korean Won MYR Malaysian Ringgit PHP Philippine Peso TWD Taiwan Dollar VND Vietnamese đồng |
EGP Egyptian pound ILS Israeli Shekel KZT Kazakh tenge RUB Russian Ruble |
ARS Argentine Peso BRL Brazilian Real CLP Chilean Peso COP Colombian Peso GTQ Guatemalan quetzal PEN Peruvian nuevo sol UYU Uruguayan peso VEB Venezuelan bolívar |
