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Thomson Reuters
Emerging Markets

A bid farewell to inefficiency: speeding up auctions in emerging markets

Nick Fletcher

30 Jun 2017

A cheetah looks for its prey in the Masai Mara game reserve, Kenya. Photographer: Radu Sigheti

In developing markets, there’s critical need for greater speed and efficiency in financial transactions. How is the Thomson Reuters Eikon Auctions App helping to meet this challenge?

The app has recently been rolled out by the Central Banks of Ghana and Uganda which highlights how Thomson Reuters is working hard to meet the needs of financial services in developing nations.

Find out how to gain easy access to trusted news, data, and analytics with Thomson Reuters Eikon

Participants used their Eikon desktops for the landmark auctions, which were completed successfully following the involvement of the Ghana and Uganda central banks and their respective commercial banks.

These online events demonstrated the steps being taken by Thomson Reuters to improve the auctions process in many developing countries.

Developing markets

Auction transparency

With little automation, issues with unreliable communication lines and limited transparency, auctions in developing markets typically do not have the capacity to manage multiple bidding organizations.

Watch more on the Auctions App

They are also vulnerable to favoritism (or at least perceptions of it) and simply take too long.

An auction that might take an hour in the United States or other more established markets, can take several days to complete in a developing one.

Caption needed here
The Eikon Auction App in action

Knowing these auctions serve a critical need for developing nations, and that they could be done with much with more efficiency, accuracy and transparency, the Thomson Reuters Global Growth Organization (GGO) set out to build a sophisticated, yet simple, auction solution, delivered via the Thomson Reuters Eikon desktop.

The result was the Auctions App on the Eikon platform, which brings sophistication, automation and transparency to the auctions process in emerging markets.

Watch video — Auctions App on Thomson Reuters Eikon

Watch more on the Auctions App

Timely and fair allocation

Through Eikon, central banks and ministries of finance can now announce, manage and perform auctions electronically with the Auctions App.

All parties involved in the auction — from supervisors and administrators to a selected set of auction participants — use the Auction App for their entire workflow.

The Auction App’s built-in allocation algorithms help provide a timely and fair allocation. The App also shows the status of the auction to participants at all times.

Developing markets
Dashboard in Auctions App

These features are providing transparency to markets where a fair access to liquidity plays a crucial role in our customer’s economies.

Find out more about the Auctions App

Flexible profile management

The Auctions App enables users to:

  • Create auctions with a few clicks using templates.
  • Gain complete control over features available to both internal users and auction participants (primary dealers), with flexible profile management.
  • Simplify bid submission by the primary dealer community through a simple form in their view of the Auctions App.
  • See a real-time view of primary dealer bidding and a full audit of their bidding history.
  • Access a simple but powerful user interface which make it possible to allocate auctions by a number of criteria, as well as exporting allocation scenarios at any time before publication.
  • Strengthen back office delivery of allocated bids though our robust industry-standard post-trade service.

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