Market transparency and greater connectivity within the active foreign exchange communities is what Bank Indonesia will achieve with its new integration of Bloomberg’s foreign exchange trading platform, Bloomberg FXGO. The commission-free real-time trade monitoring system is a definite boost for local and regional market participants dealing in the forex markets. The new direct connectivity will enable banks and securities firms in Indonesia to carry out FX transactions “seamlessly” on their Bloomberg Professional service–from pre-trade and trade execution to post-trade reporting to the central bank.
SISMONTAVAR (Sistem Monitoring Transaksi Valuta Asing Terhadap Rupiah) is a real-time monitoring system that allows Bank Indonesia to track and monitor transactional data on all foreign currencies against the Indonesian rupiah (IDR), Indonesia’s official currency. Now, with the integration of Bloomberg FXGO into SISMONTAVAR, Bank Indonesia will be begin receiving IDR transactions conducted on FXGO, which will ultimately contribute to enhanced market transparency and accuracy of the value of the IDR against foreign currencies.
“This is an important milestone at a time when the global foreign exchange market is looking for new ways to increase transparency and efficiency,” Tod Van Name, global head of FX and commodities electronic trading with Bloomberg said in a statement. “Direct connectivity between Bloomberg FXGO and SISMONTAVAR will allow our clients to achieve significantly faster and more efficient workflow when sourcing and settling their foreign exchange needs, while supporting the requirements of Bank Indonesia.”
Bloomberg FXGO offers what the company calls “a robust foreign exchange community”. The platform has surged in popularity–bringing in double-digit annual growth rates across users, volumes and value of transactions, according to Bloomberg. It’s uniqueness lies within proprietary technology that allows the execution of spot, non-deliverable forward (NDF), option, outright and swap transactions from pre-trade, trade execution to post-trade processes on a single platform offering unique benefits to both sell-side and buy-side users on FXGO.
According to the 10th Triennial Central Bank Survey conducted by the Bank for International Settlements (BIS), trading in foreign exchange markets rose 61% from six years ago to an average of US$5.3 trillion per day in April 2013. FX spot trading was amongst the most active of traded instruments, coming in at US$2 trillion per day. In Indonesia, foreign exchange market turnover stood at US$5 billion in 2013.
Photo Credit: Bank Indonesia, Reuters