Bloomberg STP Solutions, an international cross-asset, post-trade processing provider, and Traiana, a developer of pre-trade risk and post-trade processing solutions, today announced a partnership that is set to lead to the creation of a straight-through processing infrastructure to further streamline the workflow of foreign exchange (FX) options.
The solution will combine Traiana’s Harmony messaging network and Bloomberg’s trade processing tools.
“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, Bloomberg’s Global Head of Product. “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 messaging service will be based on 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.
Jill Sigelbaum, Global Head of FX at Traiana, commented:
“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. 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.”
Both Bloomberg and Traiana said this would be an important move towards introducing much needed straight through-processing for FX options. The use of existing infrastructure makes the solution a very cost effective means to accommodate a variety of existing market workflows around affirmations and allocations.
To view the official announcement on the partnership between Bloomberg and Traiana, click here.