Premia Partners Adopts Bloomberg LQA for Liquidity Risk Management
April 15, 2021
Data-driven liquidity tool provides Asia ETF specialists with seamless workflow for regulatory reporting
Hong Kong – Bloomberg announced today that Premia Partners Company Limited (“Premia Partners”), a leading innovative Asia ETF provider in Hong Kong, has adopted Bloomberg’s Liquidity Assessment (“LQA”) to better comply with liquidity assessments as mandated by the Hong Kong Securities and Futures Commission (SFC). The latest Fund Manager Code of Conduct and subsequent circular by the SFC mandates managers of collective investment schemes to regularly assess and report liquidity profiles to better manage market liquidity risks.
“In today’s highly volatile markets, it was important for us to adopt a robust solution that enabled full oversight of liquidity positions across our growing ETF products,” said David Lai, Partner & Co-CIO at Premia Partners. “As retail investment products in the region proliferate and become more sophisticated, regulators are signalling to fund managers that liquidity risk is an area they would like to watch more closely. Adopting Bloomberg’s LQA was an opportunity to comply with our reporting requirements by seamlessly integrating a trusted market-leading tool that provides greater reassurance for our regulators, portfolio managers and customers.”
Bloomberg’s multi award-winning solution for Liquidity Assessment (LQA) provides the ability to quantitatively evaluate market liquidity across multiple asset classes using a data driven approach. LQA assists firms with both enhanced fund reporting compliance and in building a comprehensive Liquidity Risk Management (LRM) framework. Bloomberg LQA leverages a robust financial dataset coupled with a big-data framework to ensure the relevant factors influencing liquidity are considered. This unique approach allows for liquidity estimation even for instruments with limited trading activity.
“Liquidity is risk that regulators are extremely focused on globally, during normal market conditions and through periods of heightened market volatility,” said Brad Foster, Global Head of Enterprise Data Content at Bloomberg. “Given recent unprecedented market disruption, many of the region’s largest fund managers have come to us to better assess their liquidity risk in rapidly changing market conditions and continued regulatory focus. They have found that LQA consistently produced accurate results by applying cutting-edge financial modelling techniques to Bloomberg’s vast amount of trade data.”
For more details about Bloomberg LQA, please visit https://www.bloomberg.com/professional/product/bloomberg-liquidity-assessment/ or request a demo.
About Bloomberg
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About Premia Partners
Founded in Hong Kong in 2016, Premia Partners has emerged as one of the leading independent, pure-play ETF asset managers in Asia. Dedicated to building and curating best practice ETFs and rule-based solutions for Asia, our goal is to contribute to a better ETF ecosystem in Asia and for Asia. Premia Partners currently* manages 8 ETFs including Premia CSI Caixin China New Economy ETF which is the 4th largest China A-shares ETF in Hong Kong, and winner of the HKEx 2019 Top Performing ETF – Total Return Award. For more information on Premia or Premia ETFs including strategies covering China, Emerging ASEAN, Asia Innovative Technology, Vietnam, China high yield bonds, China government bonds and US Treasury, please visit www.premia-partners.com
*as of April 14th 2021