Bloomberg announced the launch of its Entity Exchange platform, a web-based, centralized and secure solution that enables buy-side firms to provide entity data and documentation to their trading counterparties. Entity Exchange eases the process of opening new trade accounts for the buy-side, while also helping brokers satisfy Know-Your-Customer (KYC) compliance requirements.
To make the most of sophisticated trading strategies, hedge funds need to trade with a wide variety of sell-side counterparties. These counterparties require a great deal of information and documentation to establish trading relationships, and these requirements frequently change and increase.
While global regulations require brokers to collect and organize more and more customer information as part of an established KYC process, entity information management is a two-way challenge that can also be made easier for the buy-side. Entity Exchange takes a broader approach to KYC that optimizes the client onboarding process for the buy-side as well.
Supported by Bloomberg's data intelligence team, Entity Exchange aggregates an investment firm's information into an entity profile used to automate the completion of various onboarding forms. For example, when a broker sends a request for the client's information, Entity Exchange automatically matches documents and data from the client's profile to the information requested for the client to review before it is released to the broker.
The platform gives clients control over the distribution of sensitive firm information through a permission-based workflow supported by the same multi-factor authentication technology offered to Bloomberg Professional service subscribers. Entity Exchange also produces a comprehensive audit trail of each workflow, in addition to delivering timely, client-validated information to sell-side firms.