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Bloomberg Garners SEC Approval for Its Confirmation Matching Service

by Jeff Patterson
  • Bloomberg's CMS will aim to foster automated post-trade processes, whereby streamlining shortened settlement cycles for DTC securities.
Bloomberg Garners SEC Approval for Its Confirmation Matching Service
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Bloomberg STP LLC, a subsidiary of Bloomberg, has received approval from US’ Securities and Exchange Commission (SEC) for a confirmation matching service (CMS) offering, for Depository, Trust and Clearing (DTC) eligible equity and fixed-income securities, according to a Bloomberg statement.

Bloomberg's CMS will aim to foster automated post-trade processes, whereby streamlining shortened settlement cycles. The offering is important as it targets a dual-focused realm of both equity and fixed-income securities, fully under the mantle of FIX protocol.

The group’s new CMS offering is slated to feature a fully integrated open architecture platform that is capable of supporting both central and local matching. Moreover, this will include industry standard communication protocols such as TCP/IP, SNA, as well as message and file transfer protocols, i.e. FIX, MQSeries, SWIFT, software message format standards, including FIX, ISITC, and message languages and metadata such as XML.

According to Ben Macdonald, Global Head of Product at Bloomberg, in a recent statement on the approval, "The financial industry is under pressure due to both financial and operational challenges to create more efficient trade processing solutions with better operational controls.”

“Bloomberg's CMS has been developed in response to industry concerns with the 'single point of failure' model that exists today, as well as calls from market participants for alternatives, competition, enhanced efficiencies and a more robust clearance and settlement system. We believe that additional straight-through processing services and more efficient offerings are needed to advance and strengthen the market, especially with the move to T+2 settlement in the US," he added.

Bloomberg STP LLC, a subsidiary of Bloomberg, has received approval from US’ Securities and Exchange Commission (SEC) for a confirmation matching service (CMS) offering, for Depository, Trust and Clearing (DTC) eligible equity and fixed-income securities, according to a Bloomberg statement.

Bloomberg's CMS will aim to foster automated post-trade processes, whereby streamlining shortened settlement cycles. The offering is important as it targets a dual-focused realm of both equity and fixed-income securities, fully under the mantle of FIX protocol.

The group’s new CMS offering is slated to feature a fully integrated open architecture platform that is capable of supporting both central and local matching. Moreover, this will include industry standard communication protocols such as TCP/IP, SNA, as well as message and file transfer protocols, i.e. FIX, MQSeries, SWIFT, software message format standards, including FIX, ISITC, and message languages and metadata such as XML.

According to Ben Macdonald, Global Head of Product at Bloomberg, in a recent statement on the approval, "The financial industry is under pressure due to both financial and operational challenges to create more efficient trade processing solutions with better operational controls.”

“Bloomberg's CMS has been developed in response to industry concerns with the 'single point of failure' model that exists today, as well as calls from market participants for alternatives, competition, enhanced efficiencies and a more robust clearance and settlement system. We believe that additional straight-through processing services and more efficient offerings are needed to advance and strengthen the market, especially with the move to T+2 settlement in the US," he added.

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