US hedge fund giant Citadel has selected Bloomberg's fixed income trading platform for its electronic execution and clearing of interest rate swaps (IRS).
Citadel, whose CIO Tom Miglis was profiled by Waters in a recent cover feature, began placing trades through the system on Monday, brokered by Deutsche Bank and cleared through LCH.Clearnet. Bloomberg's software automates elements of trade processing, and provides direct access to clearing houses such without the need for interim bridging solutions and other middleware.
Bloomberg intends to register as a Swap Execution Facility (SEF), in line with Dodd-Frank Act reforms of the over-the-counter (OTC) derivatives market. Under these provisions, standardized contracts will be transacted through registered entities and centrally cleared.
"Our investment activity requires a world-class platform that delivers the very best in market liquidity and streamlined, front-to-back, straight-through processing," says Richard Mazzella, chief operating officer of Citadel's Global Fixed Income business. "Bloomberg's platform provides this powerful combination, strengthening the quality and efficiency of our vanilla interest rate swap activities to the benefit of our investors."
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