Bloomberg, along with the China Foreign Exchange Trade System (CFETS), has launched access channels to China’s interbank bond market (CIBM). This will allow global investors to trade onshore Chinese bonds via the Bloomberg Terminal.
Bloomberg with its Chinese partner has made the announcement today at the China Bond Market International Forum. With this, Bloomberg Terminal clients can access both CIBM Direct and Bond Connect to access China’s market as an offshore investor.
Commenting on this development, Mary Schapiro, vice chair for global public policy and special advisor to the founder and chairman of Bloomberg, said: “For some time now, we have been working closely with the People’s Bank of China, CFETS, Hong Kong Exchange and other parties to advance China’s bond market development and facilitate greater investor access.”
“With these two new access channels, we expect the appetite to seek yield, liquidity, and alpha in China’s $12 trillion bond market to grow further. As China continues to deepen its financial reform, China’s bond market is an opportunity many investors can no longer ignore.”
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Bloomberg also integrated its voice confirmation feature (VCON) with CFETS which will allow the offshore investors to send trade details directly to their corresponding onshore agent banks. In addition, onshore agent banks can send pre-filled messages to their offshore clients who are using Bloomberg’s VCON to register trades on CFETS.
For investors using Bond Connect, Bloomberg has opened a new access point through its execution management system (TSOX) integrating with CFETS.
“The global financial community has been looking forward to these additional trading solutions and channels from Bloomberg,” said Tu Hong, Chief Investment Officer, Bank of Communications. “These trading solutions will not only provide additional avenues for foreign investors but will also simplify the workflow for market participants, creating maximum efficiencies.”
Earlier this month, Bloomberg affiliate Bloomberg Trading Facility Limited secured approval from the Dutch Authority for the Financial Markets (AFM) to operate a multilateral trading facility (MTF) in the country. Bloomberg is also trying to expand in the South East Asian market as last year it partnered with Bankers Association of the Philippines to boost FX trading in the region.