NEX Markets has announced that Bloomberg FX (BFIX) rates will be added to its service that enables customers to execute fixing interest electronically via the EBS Market platform.The NEX eFix Matching is adding the rates to its service in response to specific customer needs as market participants look to have a more holistic view of managing benchmark risk.
The Bloomberg FX benchmark is a fix for portfolio benchmarking, derivatives valuation, index construction, and trade execution. BFIX is aligned with the International Organization of Securities Commissions’ (IOSCO) principles for financial benchmarks.
Bloomberg FX (BFIX) will be launched on the NEX eFix Matching Service in stages. The first 10 BFIX rates, including the 13:00 and 16:00 BFIX rates, will be live as of 21 May.
NEX customers use eFix Matching to benefit from anonymous access to a central pool of liquidity for the most liquid daily fixes, which can be accessed via the EBS Workstation, web browser or an EBS API connection.
NEX Group is a leading electronic trading technology services provider for the fixed income and foreign exchange (FX) markets. Seth Johnson, Chief Executive Officer of NEX Markets, said:
“eFix Matching was launched as a direct response to the Financial Stability Board recommending a solution to ensure robust fix execution, and from that time we have operated in answer to market needs, whether through the addition of new fixings or development of new features within the service. We’ve seen significant demand for BFIX and are thrilled to bring the rates onto our service, continuing our aim to provide benchmarks wherever our client base has a requirement to reduce fixing risk.”
Colin Gallagher, Bloomberg’s head of Foreign Exchange Analytics, commented:
“BFIX has gained wide acceptance globally and we are excited about offering the rates in eFix matching. This will provide users of BFIX with a market recognized risk mitigation tool and reinforces our commitment to deliver a best-in-class FX Benchmark.”
Launched in 2014 as a central market utility for reducing Benchmark fixing risk,
the NEX eFix Matching Service has grown due to the regular additions of new fixing rates and clients choosing to access the service. Growth rates, which are driven by automation and a shift in the way banks manage client fixing orders, have ranged from 25 percent API to 65 percent API execution since 2014.
