Search press announcements

Bloomberg VCON is First Provider to Connect Multiple CCPS for

October 21, 2010

  Bloomberg VCON is First Provider to Connect Multiple CCPS for IRS

Citadel LLC, Freddie Mac and PIMCO use Bloomberg’s industry workflow solution
                          to connect to CME Clearing

     Bloomberg VCON helps reduce costs, market risks and meet mandates of
                                Dodd-Frank Act

Business Wire

NEW YORK -- October 21, 2010

Bloomberg today announced that VCON, the firm’s voice trade confirmation
system for cash and derivative instruments, is the first to connect buy-side
and sell-side firms to multiple central clearing counterparties (CCPs) for
interest rate swaps (IRS) central clearing.

Bloomberg also announced that Citadel LLC, Freddie Mac and PIMCO are among the
firms now using Bloomberg’s VCON industry workflow solution to connect to CME
Clearing. Other clearing houses already connected via the Bloomberg tool are
the Intercontinental Exchange (ICE) & CME Clearing for Credit Derivatives, and
the International Derivatives Clearing Group (IDCG) for Interest Rate Swaps.
Clients also have access to LCH.Clearnet’s Swapclear service through Bloomberg
VCON's integration with MarkitServ.

Bloomberg’s VCON <GO> is a multi-asset class system that allows for all
post-trade communications and affirmations to be completed on one platform.
Bloomberg clients are able to match trades, integrate them with Bloomberg
analytics, and send those trades directly to all major CCPs for IRS and credit
default swaps (CDS).

“Bloomberg’s VCON interface has become a widely-accepted industry utility,
providing clients with a centralized hub for credit derivatives clearing,”
said Ben Macdonald, Bloomberg’s Global Head of Fixed Income Trading. “By
adding the ability to clear interest rate swaps, Bloomberg provides clients
with a comprehensive, easy to use, efficient and cost-saving solution that
will help mitigate market exposure and meet the latest regulatory

Kim Taylor, President of CME Clearing, said, "With Monday’s launch, CME
Clearing establishes an open standard API for platforms such as Bloomberg, to
send affirmed trades directly to a clearing house or CCP. CME Clearing, in
conjunction with its technology partners, has set a new standard for STP
efficiency. We look forward to working with Bloomberg to deliver an enhanced
end-user clearing experience."

Gerald Beeson, COO of Citadel, said, "We feel this development in the launch
of the Interest Rate Derivative market here in the U.S. is an important step
forward and will provide further momentum in connection with fulfilling the
promise of central clearing of derivatives. We welcome the opportunity to be
an early adopter of CME's platform and hope this is a catalyst for launch of
similar efforts across other derivative markets. Bloomberg has been a valued
technology partner in helping us achieve this with their VCON product."

John Shay, co-founder and Chief Marketing Officer of IDCG, said, “IDCG has
been receiving trades from VCON since early September and have found it to be
useful in the transition from OTC to our clearinghouse. IDCG has received very
positive feedback about VCON since customers starting using it to deliver
trades to IDCG in early September. We feel platforms with multiple
connectivity options like IDCG and Bloomberg's VCON will help ease transition
into the cleared environment for OTC derivative users.”

Bloomberg announced the first-ever interface to CDS clearing in January, which
is already widely in-use by the firm’s clients. This addition to the VCON
interface further builds out Bloomberg’s capabilities as a provider of
execution and post-trade services in the global market for over-the-counter
(OTC) derivatives. Currently VCON supports all Fixed Income cash products,
foreign exchange (FX), Futures, Options, IRS, and CDS, including novations and

Bloomberg’s VCON service is available on the Bloomberg Professional service at
VCON <GO>. Non-Bloomberg users can find out more information by contacting
Jeffrey Missimer at or Jennifer McMullen at or by calling 212-318-2000.

About Bloomberg

Bloomberg is the world’s most trusted source of information for financial
professionals and businesses. Bloomberg combines innovative technology with
unmatched analytics, data, news, display and distribution capabilities, to
deliver critical information via the Bloomberg Professional service and
multimedia platforms. Bloomberg's media properties span television, radio,
digital and print, making up one of the world’s largest news organizations
with more than 2,300 news and multimedia professionals at 146 bureaus in 72


Loretta Mock, 1-646-395-6300
Pam Snook, 1-212-617-7652