{"id":10962,"date":"2020-11-12T08:30:02","date_gmt":"2020-11-12T13:30:02","guid":{"rendered":"https:\/\/www.bloomberg.com\/company\/press\/first-electronic-sofr-vs-fed-funds-compression-trade-executed-via-bloomberg-sef\/"},"modified":"2020-11-12T08:30:02","modified_gmt":"2020-11-12T13:30:02","slug":"first-electronic-sofr-vs-fed-funds-compression-trade-executed-via-bloomberg-sef","status":"publish","type":"press","link":"https:\/\/www.bloomberg.com\/company\/press\/first-electronic-sofr-vs-fed-funds-compression-trade-executed-via-bloomberg-sef\/","title":{"rendered":"First Electronic SOFR vs Fed Funds Compression Trade Executed via Bloomberg SEF"},"content":{"rendered":"
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New York<\/strong> – Today, Bloomberg announced that the first electronic SOFR versus Effective Federal Funds Rate (\u201cEFFR\u201d) basis swap compression trade was executed on the Bloomberg SEF (\u201cBSEF\u201d). The participants successfully executed a 10-year cleared swap unwind (equal and opposite to an original cleared position), using request-for-quote through Bloomberg\u2019s list trading tool, BOLT, to achieve compression of the original position at CME, where the swap was cleared.<\/p>\n

Bloomberg supports trading on coupon, basis spread and Net Present Value (NPV), allowing clients to rebalance portfolios from LIBOR to Risk Free Rates. These workflows are complemented by portfolio analytics to calculate margin costs, analyze key rate risk and evaluate what-if scenarios all seamlessly integrated with BOLT.<\/p>\n

Clients have had access to trade USD SOFR outright and basis product suite electronically since 2018, alongside offerings in other major currency Risk Free Rate products set to replace LIBOR as market standard.<\/p>\n

\u201cThe Libor transition requires a synchronized effort, which is essential to a sound and resilient financial system,\u201d said Steven Doherty, director, public investments, Northwestern Mutual. \u201cExecuting the first electronic trade using this new enhanced functionality creates efficiencies and supports our goal of maximizing long-term investment returns for our policyowners, while maintaining our unsurpassed financial strength.\u201d<\/p>\n

“Libor transition is one of the most important changes in the Rates and FX market today.\u00a0Wells Fargo’s Macro sales and trading team will remain dedicated to supporting this critical evolution for our clients, including providing technology solutions for efficient execution of SOFR risks,\u201d said James Wang, Global Head of Institutional Interest Rates & Foreign Exchange Sales at Wells Fargo.<\/p>\n

\u201cBeing the first to market with our SOFR compression trading offering is a clear demonstration of Bloomberg\u2019s commitment to support\u00a0 <\/span>market participants looking to manage their IBOR exposure,\u201d said Nicholas Bean, Head of Electronic Trading Solutions at Bloomberg. \u201cClients who trade on Bloomberg continue to have access to deep liquidity alongside the post trade efficiencies that come with electronic execution.\u201d<\/p>\n

\u201cCompression is a crucial tool for cleared market participants, and the ability to compress SOFR versus EFFR trades is of particular significance for our clearing members who are looking to boost operational and capital efficiency,\u201d said Sunil Cutinho, President, CME Clearing. \u201cWe are pleased to provide this service to clients through services such as Bloomberg SEF and BOLT.\u201d<\/p>\n

BSEF provides its participants with electronic trading for CDS, IRS, and FX derivatives built on the core technology behind Bloomberg\u2019s trading platforms, which are used by more than 1,000 global institutions today.<\/p>\n

 <\/p>\n

About Bloomberg
\n<\/b>Bloomberg, the global business and financial information and news leader, gives influential decision makers a critical edge by connecting them to a dynamic network of information, people and ideas. The company\u2019s strength \u2013 delivering data, news and analytics through innovative technology, quickly and accurately \u2013 is at the core of the Bloomberg Terminal. Bloomberg\u2019s enterprise solutions build on the company\u2019s core strength: utilizing technology to allow customers to access, integrate, distribute and manage data and information across organizations more efficiently and effectively. For more information, visit\u00a0Bloomberg.com\/company<\/a>\u00a0or\u00a0request a demo<\/a>.<\/p>\n

Bloomberg Media Contacts<\/em>
\nUS, Gauri Andriks, +1 (212) 617-6361, gandriks@bloomberg.net\u00a0<\/em>
\nAsia, Grace Ngoh, +65-62313690, gngoh2@bloomberg.net<\/em>
\nEMEA, Anna Schoeffler, +44 20 3525 0776, aschoeffler1@bloomberg.net<\/em>
\nLATAM, Pam Snook, +1 (212)-617-7652, pamsnook@bloomberg.net<\/em><\/p>\n\n<\/div>\n\n\n<\/div>\n\n\n\t\t\n\t<\/div>\n<\/div>\n\n","protected":false},"excerpt":{"rendered":"New York – Today, Bloomberg announced that the first electronic SOFR versus Effective Federal Funds Rate (\u201cEFFR\u201d) basis swap compression trade was executed on the Bloomberg SEF (\u201cBSEF\u201d). The participants successfully executed a 10-year cleared swap unwind (equal and opposite to an original cleared position), using request-for-quote through Bloomberg\u2019s list trading tool, BOLT, to achieve [...]","protected":false},"featured_media":0,"template":"","format":"standard","categories":[86,17],"press_tag":[79],"class_list":["post-10962","press","type-press","status-publish","format-standard","hentry","category-bloomberg-professional-services","category-press-announcement","press_tag-press-announcements"],"yoast_head":"\nFirst Electronic SOFR vs Fed Funds Compression Trade Executed via Bloomberg SEF | Press | Bloomberg LP<\/title>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/www.bloomberg.com\/company\/press\/first-electronic-sofr-vs-fed-funds-compression-trade-executed-via-bloomberg-sef\/\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta 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