As new regulation comes into force in Japan requiring certain over-the-counter (OTC) trades to be executed via electronic trading platforms, Boomberg Tradebook Japan Limited today announced the launch of its electronic trading platform in the country.
Specifically, the launch supports new rules, which came into force today, based on the Japan Financial Instruments and Exchange Act (FIEA). The new rules stipulate the mandatory electronic trading of Japanese Yen Interest Rate Swaps (IRS), affecting banks and other financial institutions with outstanding OTC derivatives transaction amount of no less than JPY 6 trillion.
The new regulation reflects a push by G20 countries to require all standardized OTC derivative contracts to be traded on exchanges or electronic trading platforms, where appropriate, and to be cleared through central counterparties (CCP).
Tradebook Japan’s electronic trading platform, which will be delivered through the Bloomberg Professional service, will facilitate these conditions. Indeed, it will send all trades that are executed via the platform to the Japan Securities Clearing Corporation for clearing.
In line with the Bloomberg Professional terminal, users will also have access to Bloomberg’s 24/7 customer service and global news, data and information platform.
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Bloomberg is no doubt eager to gain a share of the Japanese market, as it is increasingly under competitive pressure from rival terminal business, Symphony.
Bloomberg is no doubt eager to gain a share of the Japanese market, as it is increasingly under competitive pressure from upstart rival terminal business, Symphony, which has been described as a Bloomberg killer.
The announcement did not confirm which financial institutions have already expressed an interest to adopt Tradebook Japan’s platform.
In an accompanying statement, Shintaro Sasaki, Representative Director of Tradebook Japan, said: “Bloomberg is committed to support the trading of relevant instruments and provide required solutions for compliance.
With our experience working with both the buy-side and sell-side firms in Japan and delivering electronic trading solutions globally, we are uniquely positioned to help our clients who expect best-in-class execution services in an evolving regulatory landscape.”