Bloomberg STP Solutions and Traiana are pairing up to develop a solution for foreign exchange (FX) options post-trade processing.
Bloomberg is a cross-asset post-trade processing provider, while Traiana provider pre-trade risk and post-trade processing solutions. Together they will develop a straight-through processing (STP) infrastructure to further streamline the workflow of FX options.
Bloomberg clients will be able to affirm trades received from any bank, and submit post-trade allocations to prime brokers through the Traiana Harmony network.
Use of existing infrastructure is intended to make the solution as cost-effective as possible, and allows the infrastructure to accommodate a variety of existing market workflows around affirmations and allocations.
Ben Macdonald, global head of product at Bloomberg, said: “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.”
He added: “We believe that providing a decentralised solution to both buy and sell side participants offers them the flexibility needed for broad market coverage and a greater level of participation.”
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.”
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