Access China’s interbank bond market using Bond Connect

TSOX <GO>  now connects Bloomberg Terminal® users to the China Foreign Exchange Trade System (CFETS).

TSOX, Bloomberg’s Execution Management System for fixed income, derivatives and futures, provides qualified offshore bond investors with the technology to actively trade within the onshore Chinese bond market. By integrating with CFETS via the Bond Connect program, Bloomberg and its global affiliates have opened up an access point for foreign institutional investors to access Chinese fixed-income liquidity.

Bond Connect leverages CFETS’s core technology and offers a unique conduit for trading access to bonds executable in the China Interbank Bond Market, which include China government bonds, policy bank bonds, local government bonds, corporate debt instruments, and onshore asset-backed securities, among other fixed-income securities. Liquidity in the supported bonds is directly provided by authorized onshore Chinese dealers and may be accessed subject to the membership and rules of Bond Connect.

 

Traditional request for quote (RFQ) trading workflow

Authorized Bloomberg Terminal users can initiate a request to receive quotes from a number of user-selected Chinese dealers who support trading on Bond Connect. Each invited dealer can provide pricing in response to the request, providing the institutional investor with the information necessary to execute a transaction.

Trade life-cycle support

Through use of TSOX, traders are able to benefit from the end-to end handling of a transaction via Bond Connect. Institutional investors can stage orders from their Order Management System into TSOX. The traders can then initiate an RFQ from TSOX for specified funds that they represent and send the RFQ to dealers (on a fully disclosed basis) that are available for the traders based on established settings, enablements and registrations. When a trade is executed via Bond Connect, TSOX generates an audit trail event and passes the details of the fill back to the originating Order Management System.

 

About TSOX

TSOX is Bloomberg’s Fixed Income Execution Management System, used by trading desks to manage their daily trading workflows in fixed income, derivatives and futures. TSOX presents traders with the tools to view orders that are to be executed, to monitor available pricing and inventories for highlighted securities, to exercise various execution styles for the routing and execution of orders, to receive fill information and initiate post-trade actions such as allocations, and to facilitate straight-through-processing back to the firm's order management system. Coupled with pre trade decision-making tools and alerts, integrated compliance rules and audit trails, and efficient access to amplifying information relevant to a given security, TSOX provides the trading desk with a powerful end-to-end execution management solution.

Learn more

To learn more about TSOX and its connections to third-party liquidity venues, contact us at tsoxconnect@bloomberg.net.

For more information about Bond Connect, type BC into your Bloomberg Terminal®, or visit the Bond Connect website at www.chinabondconnect.com.