Bloomberg Expands Exchange-for-Physical Offering for the Australian Markets

EFP trading enhancement deepens Bloomberg’s investment in Australia

Bloomberg announced a marked expansion of its electronic trading solution for the Australian markets, with a significant enhancement of its Exchange-for-Physical (EFP) trading workflow. The first such EFP transaction was completed yesterday, supported by Bloomberg Electronic Markets, with HESTA taking part in the first trade using the system, and ANZ acting as the market maker.

Building on a longstanding presence in Australian capital markets, Bloomberg Electronic Markets now supports contingent package trading with the ability to negotiate Australian bonds electronically against a benchmark Australian bond future on an Exchange-for-Physical basis. EFP contingent trading links a bond and corresponding futures leg so both trade together as a single package, minimizing execution risk.

“Exchange-for-Physical trades are important to the functioning of the Australian Debt Capital Markets and a core part of our portfolio management,” said Sonya Sawtell-Rickson, Chief Investment Officer at HESTA. “It is encouraging to see Bloomberg supporting core elements of Australian Debt Capital Market infrastructure.”

“This represents a significant step forward for Australia’s fixed income market construction, and we’re pleased to see support for a protocol that helps reduce transaction costs and execution risk for market participants. This ultimately supports our focus on carefully managing our members’ retirement savings.”

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“EFP trades are a key feature of Australian fixed income markets and an important tool for managing risk. ANZ is pleased to be involved in this inaugural trade, demonstrating our strong support for and investment in new digital ways of trading fixed‑income products. By taking a holistic view of our customers’ needs, we deliver tailored solutions that help them achieve their strategic goals,” said Glenn Blackley, Deputy Head of Markets and Head of Rates & Credit, Australia at ANZ.

“Australia is playing an increasingly important role in global capital markets, underpinned by a highly sophisticated and engaged participant base. The expansion of our EFP trading solution marks a significant step forward in our ongoing investment in our offering for our clients in the region,” said Nicholas Bean, Global Head of Electronic Markets at Bloomberg. “Clients are looking for a trusted and strategic technology partner, and we work closely with them as we develop innovative solutions that enhance liquidity access and deliver sophisticated trading workflows both locally and globally.”

EFP trades play a pivotal role in the functioning of the Australian fixed income markets. The enhancement provides clients a powerful new way to manage risk, while benefitting from an electronic workflow that enables straight-through-processing (STP). This also includes seamless integration of Order Management Systems (OMSs) for Requests-for-Quote (RFQ) and Requests-for-Market (RFM).

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