SOFR Enhancements Added to BCMP
TraditionDATA, the data and information services division of Compagnie Financière Tradition (Tradition), announced major SOFR enhancements to Bloomberg Capital Markets Package (BCMP), a joint data service between TraditionDATA, CME Group and Bloomberg, that is available via the Bloomberg Terminal. Effective immediately, BCMP users will be able to access new SOFR-focused content, including USD Medium Term Swaps vs. SOFR, USD SOFR Basis Swaps and SOFR OIS Swaps data.
Following the decision by the Commodity Futures Trading Commission (CFTC) and the Alternative Reference Rates Committee (ARRC) to move to SOFR First, the updated BCMP service will provide additional regulatory robustness by focusing on SOFR as the key pricing mechanism. The LIBOR pages will remain available in a legacy form for firms that continue to utilise the outgoing benchmark.
The BCMP was launched in 2018 as an alternative to the Reuters 19901 reference page, and provides a more regulatory robust, liquid and transparent reference rate for U.S. Treasuries and interest rate derivatives. It combines firm and executable pricing from Tradition’s interest rate central limit order book (Trad-X) with similarly structured cash U.S. Treasury pricing from CME Group’s BrokerTec central limit order book.
TraditionDATA, and CME Group have been recognised by the regulatory community as leaders in the process of migrating to new Alternate Reference Rates (ARRs). To this end, the firms have re-focused this unique service on SOFR as the underlying pricing mechanism.
Scott Fitzpatrick, Global Head of Data for Tradition, said: “When markets like the new Alternate Reference Rate markets are developing it is extremely important to the trading and risk management community that informative and trusted data is available to assist in their decision-making process. In particular, as new bond issuances and loans start to move in this direction, BCMP will act as a core reference page for this process.”
Stuart Giles, Interest Rates Business Manager at Tradition, added: “Liquidity is the most crucial factor in any market and data is a key component to help facilitate that liquidity. Interest rate markets are still very much hybrid in nature, with the combination of voice and electronic trading. However, we have seen considerable success with the launch of SOFR products on Trad-X’s CLOB through streamed liquidity from key banks in the market and electronic trading in products.
“We have also done, what we believe to be, the first fully electronic SOFR Spread-Over Treasury trade in the interdealer market, which is an important and encouraging sign for the transition to SOFR.”
Trey Berre, Global Head of Data Services at CME Group, added: “As the SOFR ecosystem continues to develop, market participants need access to the right data to make informed decisions and efficiently manage their risk. CME Group offers accurate and reliable data based on our deep and liquid underlying BrokerTec U.S. Treasury markets, and this enhancement to BCMP will help customers navigate the evolving alternative rates landscape with greater precision.”
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