Over the past 5 years, G20 countries have started implementing policy reforms and regulations that will increase transparency in the markets, promote market stability and support sustainable growth. Bloomberg is committed to being your resource for information around these reforms by providing the type of in depth information and analytics that only Bloomberg can deliver.

Bloomberg’s founding principle is around the value of creating transparency in the markets, and as a partner to both the buy-side and the sell-side, with a deep history in providing electronic trading platforms and efficient workflows; we are in a unique position to help clients navigate the regulatory maze.

As regulations are implemented country by country, the environment grows increasingly complex for firms to stay both up to date on the latest information and stay compliant with their market activities. Bloomberg supports clients’ with up to date news and analysis, and the tools needed to remain compliant.

News & Analysis

Be alerted to the latest in regulatory changes, and understand the impact on business with Bloomberg news and analysis, and our dedicated Bloomberg Brief: Financial Regulation.

Execution

Electronic trading platforms are built into the Bloomberg Professional service, and we are registered as a SEF.

Clearing

Bloomberg Professional service seamlessly integrates with central counterparties to clear trades.

Reporting

Bloomberg’s trade reporting solution seamlessly connects with trade repositories, and can facilitate trades executed both on and off the Bloomberg Professional service.

On July 21, 2010, President Obama signed the Dodd-Frank Wall Street Reform and Consumer Protection Act (“Dodd-Frank”). Title VII of Dodd-Frank amends the Commodity Exchange Act and the Securities Exchange Act of 1934 to establish a framework for the trading of swaps and security-based swaps. Two overarching goals of Dodd-Frank include bringing transparency to the swaps market and lowering the risks of the market to the overall economy.

In addition, Dodd-Frank mandates new requirements that cover three key areas of an institution’s workflow:

  • Execution
  • Clearing
  • Reporting

What does Bloomberg offer to support Dodd-Frank compliance?

Bloomberg has put solutions in place for each of these important components. And as result, Bloomberg is in an ideal situation to better serve customers and continue to champion the idea of responsible transparency and effective trading.

  • Execution: The Dodd-Frank Act mandates that the execution and trading of swaps takes place within a Swap Execution Facility. Bloomberg SEF LLC (“Bloomberg SEF”) was the first Swap Execution Facility provisionally approved by the CFTC. It was launched on October 2, 2013 and supports Credit Default Swaps (CDS), Interest Rate Swaps (IRS), Foreign Exchanges (FX) and Commodity Derivatives. Bloomberg SEF is the market-leading Swap Execution Facility with participants actively trading Permitted Transactions.
    • Order book: Bloomberg SEF provides an Order Book where all participants can post both firm and indicative bids and offers that are transparent to all other participants.
    • Request for Quote: Bloomberg SEF allows participants to initiate a request for quote (“RFQ”) to a mandatory minimum of two other participants.
  • Clearing:  Bloomberg supports the Clearing workflow process as mandated by Dodd Frank. Our progressive infrastructure supports both electronic trading as well as voiced based execution via our VCON platform. Bloomberg will continue to support relevant instruments such as FX and others.
  • Reporting: Bloomberg helps facilitate the generation and transmission of unique swap identifiers (USIs) for applicable transactions executed or affirmed through Bloomberg. In particular, for users that manual ticket voice executed CDS, IRS and FX clients can use either CDXT <GO> or SWXT <GO> to cut and paste an initial USI into a free text field.

For transactions that occur on the Bloomberg SEF, BSEF LLC will report the initial trade and any allocations to an SDR as provided for under CFTC rules.

Related Links:
Bloomberg SEF
The Global Implications of Financial Regulation
Bloomberg Leads SEF Market Share
The Evolution of the OTC Swaps Market
DFA Trade Reconstruction
Bloomberg Receives Swap Execution Facility Approval
Citadel Uses Bloomberg for Derivatives Trading & Clearing Access
Bloomberg Files SEF and SDR Applications
Eye on the Credit Markets: Regulation & Tapering
Approaching the Terminal (Bloomberg’s Entrée into SEFs)

The European Market Infrastructure Regulation (EMIR) entered into force on 16th August 2012. EMIR imposes reporting, clearing, risk mitigation and margin requirements on derivative contracts executed by European Union (EU) entities.

  • Clearing: Standardized derivative contracts should be cleared through central counter parties in order to reduce the risk in the financial system
  • Margin and capital: Clearing counterparty shall have permanent, available and separate initial and variation margins in the form of highly liquid collateral
  • Reporting: All OTC derivative contracts should be reported to trade repositories

What does Bloomberg offer to support EMIR compliance?

Trade Reporting

Bloomberg’s STP solutions allow clients to comply with reporting requirements for OTC and Exchange Traded Derivatives around the globe, connect with key exchanges, clearing houses and trade repositories for all asset classes.

Key benefits specific to EMIR reporting are:

  • Multi-Asset — Bloomberg’s solution is multi-asset, covering IRS, CDS, FX, Equities and Commodities
  • Voice & Electronic Trades — Trades initiated via Bloomberg voice and electronic execution platforms can seamlessly flow to the preferred Trade Repository as part of the execution process.
  • Uploading and Back-loading Trades — Clients have the option to upload trades, including intra-group trades, initiated outside of Bloomberg in order to ensure that all trades are reported through a single solution.
  • Monitoring Reporting Status — Bloomberg provides a Central Reporting Blotter to monitor the reporting status of your trades.
  • Connectivity — Bloomberg connects to DTCC and Regis-TR.

Valuation Reporting Solution

Bloomberg’s EMIR collateral and valuation reporting solutions allow clients to seamlessly send valuations (Bloomberg’s or your own) to trade repositories using a single workflow.
Bloomberg offers valuation reporting solutions with coverage across multiple asset and product types. Bloomberg Derivatives offers valuations for derivatives linked to all asset classes, including interest rates, FX, equity, commodity, credit and inflation. Extended product coverage includes vanilla options, hybrid instruments, exotic options, and structured notes, which can be priced using Bloomberg derivative calculators, industry-standard pricing models, and high quality data. Pricing models include the local volatility model, stochastic local volatility model, Hull & White, and more.

Related Links:
EMIR Special Report
Regulation 2014: EMIR
Watch: EMIR Valuation Reporting Webinar
EMIR Reporting Requirements
EMIR Valuation Reporting Requirements
EMIR Special Issue 2014 (Financial Regulation BRIEF)
Bloomberg ready to support buy-side in valuation & collateral reporting under EMIR
EMIR II: A New Milestone on the Road to Derivatives Market Reform

The Monetary Authority of Singapore (MAS) issued the Securities and Futures (Reporting of Derivatives Contracts) Regulations 2013 for the mandatory reporting of specified OTC derivatives contracts traded or booked in Singapore, which came into operation on October 31, 2013. This reporting requirement is being introduced in phases.

The regulations cover reporting of interest rate derivatives contracts and credit derivatives contracts in phase 1 but will expand to cover the reporting of FX, equity and commodity derivatives in the next phase.

What does Bloomberg offer to support compliance with MAS regulations?

Bloomberg offers a trade reporting solution that is fully integrated with our desktop solution, Bloomberg Professional® service. The trade reporting solution allows users to seamlessly connect to DTCC Data Repository (Singapore) Pte. Ltd, the only licensed trade repository in Singapore, to fulfil their reporting obligations under MAS rules.

Related Links:
Bloomberg’s MAS Trade Reporting Solution Fact Sheet
Bloomberg NOW – Regulation Asia: Trade Reporting in Singapore