The international business and financial information company Bloomberg has achieved another milestone by completing the first electronically negotiated euro short-term rate (€STR) swap transaction executed across its UK Multilateral Trading Facility (BMTF).
The transaction enabled LBBW and JP Morgan to successfully execute a five-year swap trade using the request-for-quote protocol.
Tom Prickett, co-head of EMEA rates at J.P. Morgan said, “J.P. Morgan is committed to the success of €STR as the new euro risk free rate. Executing the first electronic trade using the new benchmark is an important moment for the rates asset class and highlights our intention to provide and encourage pricing in interest rate derivatives directly referencing €STR, effective immediately.”
Nicholas Bean, head of electronic trading solutions at Bloomberg, said, “Being the first to market with €STR swap electronic trading functionality is a clear demonstration of Bloomberg’s commitment to providing access to new Risk Free Rate (RFR) benchmarks for market participants looking to manage their IBOR exposure. Clients who use Bloomberg will gain access to broad liquidity, while benefiting from the efficiency that comes with electronic execution.”
Copyright © 2019 FinTech Global
