Bloomberg launched a multibroker execution management system (EMS) that bundles access to brokers' algorithms with pre- and post-trade analysis, trading blotters, and benchmarks to help traders improve their performance. EMS is an extension of the existing Bloomberg order management system (OMS).
Bloomberg has designed the new platform with the capability to be integrated with other third-party OMSs, according to Don Carey, global manager of the execution management platform. As a result, Bloomberg is offering the product at no extra charge to thousands of traders who use the Bloomberg information terminal.
"The preferred solution for many will be to send the orders from the [third-party] OMS into the EMS and analyze them with Bloomberg content and then select the preferred venue from the leading dealers that we've partnered with," says Carey. The Bloomberg network connects to 960 destinations across the world for equities, including TradeBook ECN, which is owned by Bloomberg, and about 40 fixed-income dealers.
Denise Valentine, senior analyst at Celent Communications, says this will be an alternative for small and mid-size money-management firms that cannot afford "a Charles River or a Macgregor." Valentine notes that such systems can cost as much as $1 million a year. "Bloomberg and Reuters will have a market because not everyone can afford the big implementation," she says.
Bloomberg has been building up its algorithmic trading capabilities, which come from 19 dealers around the world and are integrated with the execution management platform. "In doing so, we can enable the global dealer community to reach the global buy-side community very quickly," says Bloomberg's Carey.
Josh Galper, senior consultant at The Tabb Group, says binding together the data, analytics and routing "is a smart thing to do, because it really adds value to [Bloomberg's] platform." If buy-side traders can upload a list of securities into Bloomberg - and Bloomberg has the pre-trade analysis calculations - "they can trade, get their fills and do all of their post-trade analysis all within the one system," he says.
Ivy is Editor-at-Large for Advanced Trading and Wall Street & Technology. Ivy is responsible for writing in-depth feature articles, daily blogs and news articles with a focus on automated trading in the capital markets. As an industry expert, Ivy has reported on a myriad ... View Full Bio