Bloomberg Facilitates Execution & Clearing of CDS & IRS E-Trades
March 30, 2011
J.P. Morgan executes trades with multiple firms on FIT Platform
Bloomberg prepares for launch of Swap Execution Facility
NEW YORK — Bloomberg executives today announced that J.P.
Morgan electronically executed and cleared credit default swap
(CDS) and interest-rate swap (IRS) trades on Bloomberg’s Fixed
Income Electronic Trading platform (FIT).
The trades demonstrate that Bloomberg’s Fixed Income business is
preparing to meet the broadly defined requirements of the Dodd-
Frank Act, which calls for increased transparency and market
efficiency in over-the-counter (OTC) derivatives trading.
Bloomberg intends to register with the U.S. Commodity Futures
Trading Commission (CFTC) and the U.S. Securities and Exchange
Commission (SEC) as a Swap Execution Facility (SEF) and Security
Based Swap Execution Facility (SBSEF), respectively.
Ben Macdonald, global head of Bloomberg’s Fixed Income business,
said, “These trades represent the next generation of electronic
trading and clearing. Today’s execution, our ability to handle
large volumes, and our VCON voice affirmation platform,
demonstrate Bloomberg’s ability to provide clients with any
option they need.” Macdonald added, “Having all of your fixed
income tools in one single, integrated system is convenient and
helps eliminate opportunities for risk.”
“We found that Bloomberg’s FIT platform is an excellent way for
us to execute and clear credit index trades,” said Rob Milam,
co-head of North American Credit Trading at J.P. Morgan. “We’ve
been at the forefront of electronic trading since we first
offered CDS single dealer trading via JPTE in 2009.”
Among the clients participating in the trades were:
BlueMountain Capital Management, Claren Road Asset Management,
Diamond Notch Asset Management, Gracie Credit Opportunities Fund
and PAMLI Capital Management LLC.
Greg Pearson, Gracie Credit Opportunities Fund Chief Financial
Officer said, “With the changing OTC landscape, easily
navigating the new work-flow is of utmost importance to our
stakeholders. Gracie Credit is working with Bloomberg and J.P.
Morgan because they are market leaders in fixed income
electronic trading, which we find to be an important emerging
platform for executing our investment strategy.”
Earlier this month, Bloomberg’s FIT completed more than $1
trillion in electronically traded IRS and CDS for 2011, making
it the market leader. Bloomberg clients have leveraged direct
connectivity to CME Clearing, ICE, the International Derivatives
Clearing Group (IDCG) and LCH.Clearnet for voice-executed
transactions since 2009. Also, Bloomberg now has 23 liquidity
providers active for IRS trading, and 11 dealers live for CDS
trading.
About Bloomberg
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the company employs more than 12,900 people in 166 locations
around the world. For more information go to www.bloomberg.com
Contact for Bloomberg:
Pam Snook, +1 212-617-7652, pamsnook@bloomberg.net
Sophie Fischman, +1 646 395 6300, Bloomberg@cognitomedia.com
Stuart Macaulay, +44 20 7438 1100,
BloombergEMEA@cognitomedia.com
Anne Karumo, +65 8112 64 09, BloombergAsia@cognitomedia.com
— Bloomberg Press Room
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