Banco Bilbao Vizcaya Argentaria, S.A. (BBVA) is the first dealer to give its institutional clients an automated way to build bespoke structured products and then calculate a tradeable price in real-time through a new Bloomberg function called the Derivatives Library, or {DLIB<GO>}.
Institutional clients of BBVA have started to execute deals based on tradeable prices delivered to BBVA’s dealer page on the Bloomberg Terminal at {DLIB BBVA }. In addition to delivering structured products pricing in real-time, DLIB provides both parties to a deal with clarity into a deal’s characteristics and gives BBVA’s buy-side customers back-testing capabilities and product life-cycle management.
“With a clear focus on private banking, this initiative is fully aligned with BBVA’s strategy to position itself as an agile organization and capture fast business from this customer segment,” said Emilio Sainz de Baranda, Global Head of Equity Derivatives Sales at BBVA. “This partnership with Bloomberg helped shorten the time it takes to structure and price deals from hours to a matter of seconds making it easier for our clients to use BBVA as their dealer of choice for structured investments.”
Bloomberg DLIB gives institutional investors access to a library of preexisting and custom deal templates for structuring equity, FX, credit and interest rate derivatives contracts with desired characteristics.
Users can work-up theoretical pricing and analyze the risk of deals, including exotic and hybrid payoffs, on the Bloomberg Terminal when they are Bloomberg Anywhere subscribers.
Bloomberg DLIB provides the community of users, the data and the infrastructure that makes BBVA customer’s workflow easier. This project is transformational because it links BBVA’s automated pricing tool with Bloomberg DLIB, which eliminates human intervention to calculate and provide BBVA’s customer with a firm price. Furthermore, through a fast implementation of this solution, BBVA has established a strategic advantage over other market participants.
“Bloomberg’s wealth of market data and analytics supports diverse investment strategies and cater to various risk and reward profiles. Our work with BBVA is another example of Bloomberg’s commitment to facilitating the workflow between the sell-side and the buy-side; from idea generation, to pre-trade, execution and post trade operations,” said Karim Faraj, Global Head of Front Office Derivatives at Bloomberg. “Structured products investors can use Bloomberg for more of their workflow — from structuring deals, to pricing them, to calculating risk on an ongoing basis.”
Institutional investors that use Bloomberg DLIB to structure and price deals can also use Bloomberg’s Multi-Asset Risk System, called MARS, for portfolio valuation and collateral management, as well as front office, market and counterparty risk management.