Bloomberg provides STP for credit derivatives

Bloomberg has linked up with New York-based technology firm T-Zero to provide its users with an electronic affirmation process for credit default swaps (CDS). T-Zero’s straight-through processing (STP) will allow users to capture and communicate trade data as well as create an audit trail to ensure economic details of an agreement are correct. There are calls for greater adoption of straight-through processing following efforts by global regulators to improve efficiency in the credit derivatives market.

“This initiative is great news for the CDS market,” said Michael Hintze, chief executive at the London-based hedge fund CQS Management. “This new partnership makes STP for CDS a reality for thousands of buy-side firms through ease of adoptability, and is vital in addressing the current issues facing the industry.”"This allows T-Zero to leverage Bloomberg’s unparalleled distribution platform to create a scalable solution for the widest possible audience, making a reality of [former chairman of the US Federal Reserve Board Alan] Greenspan’s desire to utilise today’s technology to eradicate scraps of paper,” said Mark Beeston, T-Zero’s president.