Bloomberg Automates Japanese Government Bond Market-on-Close Trading

Bloomberg Electronic Markets has executed the first fully automated Japanese Government Bond (JGB) Market-on-Close trade, marking a significant step forward in fixed-income trading technology in Asia's largest bond market, the company announced Monday from Tokyo.

The new automated workflow is aligned to BB3P, also known as Hikene Trading, the established Market-on-Close reference rate for JGBs. The introduction of automation to this process is designed to reduce manual intervention, minimize operational risk, and increase efficiency for institutional participants trading Japanese sovereign debt at the market close.

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Market-on-Close mechanisms are widely used by asset managers and dealers to execute transactions at a standardized end-of-day reference price, making accuracy and speed in the matching process critical. By automating what was previously a more manual workflow, Bloomberg aims to give market participants greater confidence in execution consistency and audit trails.

The move reflects a broader industry push to bring electronic and automated solutions to government bond markets in Asia, where JGBs represent one of the world's largest pools of sovereign debt outstanding. Automation in this segment is seen as particularly valuable given the volume and precision requirements that institutional investors demand around benchmark fixings.

Continue reading at All Financial Services & Investing for the full announcement and additional details on Bloomberg's JGB trading infrastructure.