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Bloomberg rolls out automated workflow for Japanese bond market-on-close

The system is aligned with the BB3P Hikene Trading reference rate and aims to reduce tracking error while improving execution consistency at the market close.

Reported · Written up by our desk · Fund Industry

Bloomberg has introduced an automated workflow for Japanese Government Bond, or JGB, Market-on-Close trading, completing what it says is the first fully automated JGB trade using the functionality.

The workflow is aligned with BB3P, the Hikene Trading reference rate used for JGB Market-on-Close transactions, and is designed to improve certainty around execution at a specified market close while reducing tracking error.

Bloomberg says the functionality, available through Bloomberg Electronic Markets, combines its Bid/Offer List Trading capability with Rule Builder, its trade automation tool, and uses an integrated order and execution management workflow via TSOX to route orders automatically once predefined conditions are met.

BlackRock executive Yudhveer Chaudhry said the combination of Market-on-Close execution and rule-based automation represents a significant development for the JGB market, highlighting the potential for more consistent trading around the benchmark reference.

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