Central Bank of Azerbaijan adopts Bloomberg spot matching and deposit trading solutions

The Central Bank of Azerbaijan (CBA) today announced it has adopted Bloomberg’s FXGO solutions to provide electronic trading functionality for participants in the Azerbaijani foreign exchange and money markets. The offering includes market surveillance tools for the CBA, as well as BMatch, a solution for interbank trading in the local foreign exchange market, and a deposit trading solution.

BMatch offers spot matching functionality to the interbank community for several locally traded currency crosses. It allows anonymous orders to be placed into a central limit order book, which are displayed and then matched with counterparty orders based on mutual trading limits configured by each bank.

FXGO also supports deposit trading by consolidating price contributions in the Azerbaijani Manat and United States Dollar from local banks into a single view for pre-trade price discovery and analytics. From this screen, users can send requests for quotes (RFQs) to their counterparties and complete their deposit trade negotiations.

Both BMatch and the deposit trading solution can be integrated with banks’ middle and back-office systems. Consolidated trade statistics can also be calculated and made available to the market.

“The introduction of Bloomberg’s FXGO solutions played a vital role in our adoption of a new policy framework that requires an active interbank money market. The deposit trading solution includes all the necessary features to revive the money market segment and Bmatch will improve the infrastructure of the interbank FX market, allowing banks to track supply and demand in real time and to trade multiple currency pairs efficiently. Overall, Bloomberg’s FXGO solutions will increase transparency and liquidity in local markets, which in turn, will enable us to implement our policies in a more efficient way,” says Elrad Seydiyev, Director of Financial Markets Operations Department of the Central Bank of Azerbaijan.

“We are delighted to expand our FXGO offering in Azerbaijan in partnership with the Central Bank of Azerbaijan which will contribute to increasing the transparency, liquidity and efficiency of the local market,” said Tod Van Name, Bloomberg’s Global Head of FX Electronic Trading. “Markets need robust technical infrastructure solutions that are tailored to local market requirements, and our extensive experience in supporting foreign exchange and deposit trading in many countries around the world allows us to provide solutions that can readily be adapted to the needs and requirements of institutions such as the Central Bank.”

FXGO solutions are fully integrated with Bloomberg’s data, news, analytics and communications tools to provide local Azerbaijani clients active in the foreign exchange and deposit markets with a single, comprehensive solution.

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