Bloomberg has been granted regulatory authorisation to launch a multilateral trading facility (MTF) in Europe for the trading of OTC derivatives products.

Market participants will be able to execute interest rate swaps (IRS) and credit default swaps (CDS) on Bloomberg Trading Facility, using both request for quote and order book functionalities.

Bloomberg operates a similar platform in the US through its swap execution facility, which also enables the execution of IRS and CDS products, as mandated by rules under the Dodd-Frank act.

Regulations such as MiFID II are pushing all trading to regulated markets, though mandates have come into force in the US before Europe.

“Bloomberg’s MTF trading platform is a key addition to the portfolio of services we are providing our clients to enable them to meet their regulatory obligations, and will provide for a seamless transition into the MiFID II regulatory environment," said Jean-Paul Zammitt, chief executive officer, BTF and global head of financial products services division, Bloomberg.