Bloomberg today introduced the release of its Fixed Income ETF Basket Tool. It aims to “further automate the workflow and construction of fixed income exchange traded funds (ETFs).”
State Street Global Advisors is the first ETF provider to adopt the ETF solution, according to the press statement.
“Unlike equity ETF products, fixed income ETFs are highly customized. The Bloomberg Fixed Income ETF Basket Tool helps the basketing and negotiating process by introducing efficiencies that have not existed for these products,” said Ben Macdonald, global head of product for Bloomberg. “Our solution integrates our pre-existing technology and helps SSGAs authorized participants and market makers to gain access to the liquidity necessary to create and redeem fixed income ETFs.
Rapid growth in the fixed income ETF market has provided more liquidity and a cost-efficient alternative to undertaking credit risk, said Timothy Coyne, global head of the ETF Capital Markets Group at State Street Global Advisors. The Fixed Income ETF Basket Tool provides market participants an efficient and systematic way to access the primary market of ETFs.
The basket tool “incorporates the SSGA criteria into functionality from across the Bloomberg terminal, including the firm’s Trading Solutions Order Execution (TSOX), Portfolio Analytics and Risk (PORT) and Fixed Income Trading (FIT) solutions.”
