Bloomberg Enhances Swap Connect Solution for Global Investors

Bloomberg announced it has enhanced its Swap Connect solution to better facilitate global investments in China’s onshore interbank interest rate swap (IRS) markets.

These changes are in line with the latest enhancements applicable to the Northbound Swap Connect scheme, commencing today, introduced by China Foreign Exchange Trade System (CFETS), Shanghai Clearing House, and OTC Clearing Hong Kong Limited. New features of Bloomberg’s Swap Connect solution include support for IRS contracts with International Monetary Market (IMM) dates and ability to unwind (offset) existing contracts in global investors’ portfolios.

Bloomberg provides a seamless solution for eligible offshore market participants to trade IRS via Swap Connect, the OTC derivatives trading link between Mainland China and Hong Kong accessible via Bloomberg Terminal. With the new acceptance of mainstream IMM dates-based IRS contracts, the scheme will be able to further meet investors’ diverse risk management needs. Additionally, the unwind (offset) services will allow investors to compress eligible IRS contracts with equal and opposite economics at the Clearing House, which will help reduce capital costs and promote trading.

“As we reflect upon one year of Swap Connect in operation, it is only fitting that the first derivatives mutual market access scheme between Mainland China and Hong Kong is taking another significant step forward,” said Dahai Wang, Head of Greater China at Bloomberg. “We will continue to work closely with our partners to optimize this solution, empowering global investors and helping to deliver new levels of access to China’s onshore financial markets.”

Bloomberg provides a range of powerful trade-related solutions around the world. It also offers a full suite of solutions for China’s bond markets and cross-border investment. For more information, please visit RMB-GO- in the Bloomberg Terminal.

About Bloomberg

Bloomberg is a global leader in business and financial information, delivering trusted data, news, and insights that bring transparency, efficiency, and fairness to markets. The company helps connect influential communities across the global financial ecosystem via reliable technology solutions that enable our customers to make more informed decisions and foster better collaboration.

For more information, visit Bloomberg.com/company or request a demo.