Bloomberg's Fixed Income Trading is launching a new trading platform to help institutional investors with over-the-counter (OTC) derivatives compliance.
The trading platform, ALLQ Derivatives, allows buy-side investors to review indicative prices and execute directly with dealers on the Bloomberg Professional service. It will help investors comply with the Dodd-Frank Act requiring companies to trade credit-default swaps (CDS) and other derivatives through swap execution facilities, Bloomberg said.
Bloomberg said the AllQ platform will provide a full view of dealer liquidity available in the market and will provide multi-currency details on interest rate swaps (IRS) and CDS.
Dealers participating on AllQ IRS include Bank of America Merrill Lynch, Barclays Capital, BNP Paribas, Citigroup, COMMERZBANK and Credit Suisse. Participating in the CDS Index markets include Goldman Sachs, Nomura, The Royal Bank of Scotland plc and UBS.
"Bloomberg is the largest independent trading platform for OTC derivatives and we have been actively working with regulators to develop the mandatory clearing and post-trading reporting requirements," said Ben Macdonald, global head of Bloomberg's Fixed-Income business.
"The challenge now is to get the market ready, when we don't know exactly what the regulations will entail. The development of the ALLQ Derivatives platform is a crucial step toward SEF-style trading and the support we are getting in the marketplace is strong," he said.