Leading inter-dealer broker, Tradition, has appointed Bloomberg to supply daily fixings, on a range of products including; FX and commodities, to its recently launched hybrid trading platform for negotiation and trading of realized volatility futures.
Bloomberg will stream its fixings service, part of its independent valuation services for derivatives and structured notes. Bloomberg will provide underlying fixes on a range of financial instruments, these include; spot FX, EURUSD, AUDUSD, USDGBP, USDJPY, spot Gold and Silver and front month futures for Brent crude, WTI crude and US Nat Gas.
Rupert Hodges, CEO of Tradition FX, Energy and Equities spoke about the product deployment in a statement to the media, he said: “The incorporation of Bloomberg’s fixings on the Volatis platform is an important step in creating an offer for clients that is transparent and truly representative of the market. This relationship, combined with CME Clearing, will allow participants to access greater trading opportunities whilst also reducing counterparty risk. We see this as a further demonstration of Tradition’s focus on developing products with the market, for the market.”
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According to terms mentioned under the agreement with Tradition, Bloomberg will provide daily commodity and foreign exchange fixings observations to the Volatis platform, offering enhanced transparency by providing market participants with an accurate reflection of realised volatility.
Volatis clears products negotiated through the platform with CME’s Clearing solution. In the initial phase, Volatis will offer indications in block trades of cash settled futures contracts offered by CME Group exchanges on NYMEX WTI crude, NYMEX Brent crude, NYMEX natural gas, COMEX gold, COMEX silver, and CME currencies EUR/USD, AUD/USD, GBP/USD, USD/JPY.
As the new Dodd Frank Act is implemented by regulators in the USA trading firms such as Tradition and Bloomberg have submitted their applications to operate as a SEF. Bloomberg was the first firm to receive approval from the watchdog.