Presentation on theme: "Bloomberg Fixed Income Issuance and Trading BALKAN REGION"— Presentation transcript:
1 Bloomberg Fixed Income Issuance and Trading BALKAN REGION Robert CutlerDebt Market Trading ProductsDubrovnik, Croatia12 May 2007Multi-Dealer RFQ Firm Anonymous Orders Voice Trade Reporting No Transaction FeesMarket Activity Displays STP Features Counterparty Credit Logic Market Oversight Tools
3 46% subscription base INCREASE in Croatia, for 2006 Bloomberg OverviewSubscription baseGrowth in Local Markets, %46% subscription base INCREASE in Croatia, for 2006Fixed Income Volumes, 2006 – EMEAVolume Market ShareEuro Govies bn 37%Credits bn 81%IRS bn 79%
4 Primary Markets Bloomberg Bond Auction System 20 State Ministries/Treasuries use the Bond Auction System toAuction their Government Bills or BondsAustralia Belgium CzechoslovakiaNetherlands Finland IcelandIreland Israel CroatiaPortugal South Africa SloveniaUnited Kingdom
5 Primary Markets Key Benefits Efficiency Transparency Robust Technology Time to release results to market dramaticallyreducedTransparencyRobust TechnologyPlug & Play, Easy DeploymentFree
6 Primary MarketsBloomberg’s Primary market Auction System automates all elements of the auction process. The system gathers and manages primary dealer bids and automated, instantanous allocation via the BLOOMBERG PROFESSIONAL serviceAuction result aretransmitted to dealers andsecondary marketsworldwide via theBloomberg’s secure privatenetwork.The Bloomberg AuctionSystem is used by centralbanks, Ministries of Financeand Corporate issuersglobally.Users have completecontrol over access andallocation
7 Primary Markets The Primary Dealer bids for a new bond by simply choosing the auction, thenentering on the bid entrypage.The auctions are run inThousands (M),millions (MM), andBillions (B)
8 Primary Markets Once the bid entry ticket has been filled by the Primary Dealer and theauction has been closed,the Ministry of Financewill run their Algorithmand the auction resultswill be issues
9 Bid submission on behalf of participants Issuers can enter bids on behalf of participants should a participant have a technical problem. (optional)The bid appears in the participants BLOT. The trade detail shows how enter the bid for the participant.
11 New Bid Ticket Clearer layout – easier to use Submit firm’s current position in securityUpdate all prices at in one go with a price change functionDisplay which clients participants are bidding on behalf ofSubmit button to simplify the bid submissionScroll bar if there are more bids than can be displayed on one page.Per User Ticket – only displays bids the user has enteredTicket entry error messages appear in pop-ups making their display much clearer.
12 Bid parameters Per user limits User can setup up limits for Size Price That get applied in the bid ticket. This gives the primary dealer a safety net when using an electronic system.
13 Separate client listsIssuers can now setup separate participant lists for individual tendersParticipants will only have access to bidding, be notified and receive banners for auctions that are run in sectors they are enabled for.
23 Analytics BQ <GO> Ability to see the depth of market in a bond Click & DealRFQAnalyticsAxesRuns Message MiningBQ <GO>
24 EBND <GO> Key Benefits 1) UNIFICATION OF VARIOUS SOURCES OF LIQUIDITY2) IMPROVED PRICE DISCOVERY3) EASIER AND MORE EFFICIENTTRADE EXECUTION5) STP PROCESSING TO SETTLEMENTAND CLEARING6) LOW OVERALL COST AND NO FEES7) MORE EFFICIENT MARKET OVERSIGHTCAPACITY
25 EBND<GO> Intro Key Features All you need is your Bloomberg (no additional hardware or software required)No additional charges/costsIntegration/connectivity available to other systems –‘straight-through-processing’ of tradesMarket information reporting available – e.g. SGSM<GO>Ability to submit 2-way request-for-quote to dealersDealers have access/enablement controls for counterpartiesAbility for aggressor to trade on all prices received back in any inquiryAbility to enter firm, anonymous orders (where enabled) as well as counterparty credit limitsAbility to handle more complex order types such as ‘iceberg’, ‘all-or-nothing’ etcAbility to receive requests-for-quote when not quoting on a bondIntroEBND<GO>
26 EBND<GO> Benchmark bonds all listed down centre of screen Dealers can control who sees/can trade on their pricesDepth of market from every available dealer available for each traded bondSimple controls – ‘point-and-click’, and red mouse buttons at top of screen for other optionsNote red ‘SUSPEND QUOTES’ button at the top of the screen – ‘Panic Button’ for dealers
27 EBND<GO> Click on a bid or offer price to launch a trade ticket 2 modes: ‘Order’, ‘Inquiry’Inquiry: Select up to 5 dealers from list, send ‘RFQ’ – receive up to 5 prices back – tradeOrder: Anonymous or ‘name-giveup’ – click and trade on price. Live credit checking feature for counterparties trading anonymous orders
28 EBND<GO>Dealer responds to inquiry within same screen – Note new inquiry message in pink at bottom of screenDealer can set alerts for bid/offer spread tolerance to warn of incorrect pricing – Note alert in red ‘spread tolerance exceeded’Dealer can see how many other dealers involved in competition for the request-for-quote – Note (2) in light blue strip at the top of inquiry response popup: this indicates 2 other dealers in competition
29 EBND<GO>Inquiry: Aggressor receives responses from dealers – clicks ‘SELL’, ‘BUY’, or ‘PASS’Aggressor may trade on as many as all 5 prices received back from dealers. Trade completed when all 5 prices either traded or passed – or when ‘FINISHED’ button at top of screen is clicked
30 EBND<GO>Dealer able to re-quote or suspend quote given to aggressor before his price is accepted – Note red ‘suspend’ button in dealer popup
31 EBND<GO>Example of aggressor’s price blotter showing dealer suspended quote during inquiry
32 EBND<GO> All trade details are recorded automatically Trade details can be passed automatically to other internal/settlement systems on completion of a trade (‘Straight-through- processing’)
34 EBND<GO>Counterparty credit limit management tools to allow a dealer to create limits for anonymous order trading for each counterparty
35 EBND<GO>Data from trading on the EBND platform can be provided to the market – Here we see intraday volumes and trading statistics for each bond traded on the Singapore EBND platform. This aids market transparency and development
36 What is Bloomberg’s Goal? Central place for all market liquidityBenchmark system for all market datain established and local marketsFacilitate efficiency and transparencyin local marketsMake Bloomberg the preferred solutionin Primary & Secondary Bond Markets
37 Contacts: Robert Cutler - +44 20 7330 7494 Ebru BoysanBloomberg Help DeskBloomberg Electronic Trading Team: