Bloomberg Expands Australian EFP Trading Workflow

Bloomberg has expanded its electronic trading capabilities for the Australian fixed income market with an enhanced Exchange-for-Physical (EFP) trading workflow, marking a new step in the digitization of bond and futures trading in the region.

The first transaction using the upgraded system was on Wednesday through Bloomberg Electronic Markets. Australian superannuation fund HESTA participated in the inaugural trade, while ANZ acted as the market maker.

The enhancement allows market participants to negotiate Australian bonds electronically against benchmark Australian bond futures on an EFP basis. The contingent package trading structure links the bond and futures components into a single transaction, helping traders reduce execution risk and improve efficiency during volatile market conditions.

Bloomberg Expands Australian EFP Trading Workflow

EFP trades are famous in Australia’s fixed-income markets because they allow investors to transfer risk between cash bonds and futures markets in a coordinated manner. Bloomberg said the new workflow also supports straight-through processing (STP), alongside integration with Order Management Systems (OMSs) for Requests-for-Quote (RFQ) and Requests-for-Market (RFM).

Sonya Sawtell-Rickson, Chief Investment Officer at HESTA, said EFP trades remain an important part of portfolio management and broader debt capital market operations in Australia. She added that Bloomberg’s support for the workflow reflects ongoing development of the country’s market infrastructure while helping firms manage retirement savings more efficiently.

ANZ’s Deputy Head of Markets and Head of Rates & Credit, Australia, Glenn Blackley, described EFP trading as a core risk management tool within Australian fixed income markets. He said the bank’s participation in the inaugural trade highlights its continued investment in digital trading solutions designed to meet institutional client needs.

Nicholas Bean, Global Head of Electronic Markets at Bloomberg, said Australia is becoming increasingly important within global capital markets due to its active and sophisticated participant base. He added that the expansion reflects Bloomberg’s broader investment in regional trading infrastructure and electronic liquidity solutions.

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