Bloomberg STP Solutions unit and ICAP’s pre and post-trade monitoring group, Traiana, announced today the development of infrastructure to handle straight-through processing (STP) for FX options. The joint project matches Traiana’s Harmony messaging network with Bloomberg’s trade processing tools.
Among the results of the integration of Bloomberg and Traiana’s services is greater ease for firms to conduct STP of their FX options trades. As an example, a bank or broker will be able to use FXGO to aggregate liquidity from multiple FX options counterparties on the single platform to hedge FX options trades being offered to their own customers. By combining Harmony with FXGO, the bank or broker will then be able to consolidate trades with their counterparty through Traiana’s unified network that connects nearly all major banks, FX ECNs and prime brokers.
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In a joint statement from the two firms it was explained that the service will provide affirmation, allocation and trade life cycle management for FX options. For Bloomberg’s FXGO customers using the platform for FX options orders, they will now have the ability to affirm options trades from banks they have a relationship with and then subsequently use the Traiana Harmony network to submit post-trade allocations.
Jill Sigelbaum, Global Head of FX at Traiana, commented, “Using the connectivity and reach of Traiana’s Harmony network and the power of Bloomberg’s trade processing tools, data and analytics, market participants will be able to streamline their FX options post-trade management practices. This collaboration means that our existing community of banks, brokers and prime brokers can have ready access to Bloomberg clients with no infrastructure changes required.”