Bloomberg and Traiana to automate post-trade for FX options
Traiana and Bloomberg are targeting post-trade costs in FX
Post-trade processing company Bloomberg STP Solutions and post-trade and risk specialist Traiana have begun a joint effort to develop a straight-through processing infrastructure for FX options. The partners say it will help to reduce post-trade costs for market participants, which have typically remained higher than execution costs.
“As the FX market reaches greater levels of automation, FX options, with their complex instrument structures and numerous post-execution events, continue to involve manual processes which present operational risks and challenges to market participants,” said Ben Macdonald, global head of product at Bloomberg. “We believe that providing a decentralized solution to both buy and sell side participants offers them the flexibility needed for broad market coverage and a greater level of participation.”
The project involves integrating Traiana’s Harmony messaging network with Bloomberg’s trade processing tools. The messaging service will use existing infrastructure from both companies to include affirmation, allocation and trade lifecycle management for FX options. Bloomberg FXGO clients will be able to affirm trades received from any bank and then submit post trade allocations to any prime broker via the Traiana Harmony network.
“Using the connectivity and reach of Traiana’s Harmony network and the power of Bloomberg’s trade processing tools, data and analytics, market participants will be able to streamline their FX options post-trade management practices,” said Jill Sigelbaum, global head of FX at Traiana. “This collaboration means that our existing community of banks, brokers and prime brokers can have ready access to Bloomberg clients with no infrastructure changes required.”
