Bloomberg Automates Japanese Government Bond Market-on-Close Trading
Bloomberg completed its first fully automated JGB Market-on-Close trade, modernizing a key workflow tied to Japan's benchmark bond pricing.
Bloomberg has executed its first fully automated Japanese Government Bond (JGB) Market-on-Close trade, marking a significant step in the digitization of Japan's government bond market, the financial data and technology company announced Monday from Tokyo.
The milestone follows the rollout of a new trading workflow aligned to BB3P, also known as Hikene Trading, which serves as the Market-on-Close reference rate for JGBs. By automating this process, Bloomberg aims to reduce manual intervention in a segment of fixed-income trading that has historically relied on more labor-intensive procedures.
Read more S&P Global Ratings Unveils Vault Risk Assessment for DeFi Markets →
The move reflects a broader industry push to bring greater efficiency and consistency to bond market infrastructure, particularly in Asia, where government securities markets are large and heavily utilized by institutional investors. Automating the Market-on-Close mechanism could help standardize how end-of-day pricing benchmarks are reached for JGBs, a market that underpins vast amounts of financial activity across the region.
Bloomberg's Electronic Markets division has been expanding its automation capabilities across asset classes globally, and the JGB announcement signals continued investment in Asia-Pacific fixed-income infrastructure. The development is expected to be of particular interest to asset managers, banks, and other institutional participants that rely on JGB reference rates for portfolio valuation and risk management.
Continue reading at All Financial Services & Investing.
