A new service from Bloomberg and US dark pool operator BIDS will centralise liquidity from the data provider’s execution systems, offering further opportunities for matching trades in US equities.
The solution, known as BPool, aggregates liquidity that resides across Bloomberg’s Sell-Side Execution and Order Management System (SSEOMS), EMSX execution management system and Tradebook agency brokerage. It also includes liquidity found in the BIDS dark pool.
SSEOMS is favoured by smaller, boutique brokers and includes a high proportion of small- and mid-cap liquidity, while EMSX incorporates 13,000 clients, the majority of which are buy-side firms.
To use BPool, traders using SSEOMS or EMSX first need to opt in to the service using a conditional order type before sending an order to the broker of their choice. Tradebook clients can use BPool in the same way they do other non-displayed trading venues accessed by the broker.
If a match within Bloomberg is found, the order is pre-matched in BPool and subsequently sent to BIDS for matching.
Executions are charged using the BIDS sponsorship model, which allows traders to allocate commission for a match within BPool to the broker of their choice.
“Our aim is to re-aggregate the fragmented nature of the US equity market and improve the trading experience within Bloomberg,” Raymond Tierney, president and CEO of Bloomberg Tradebook, told theTRADEnews.com, adding that the total liquidity available in Bloomberg accounts for over 7% of average daily trading in US equities. “BPool will improve the trading and execution workflow for buy-side traders and offer them the ability to optimise their commission spend with the counterparty of their choice.”
BPool will be led by Jim White, who has worked in electronic equities markets for over 20 years.
As part of the deal, Bloomberg will also take an equity stake in BIDS Trading, joining a consortium of more than 12 financial services firms. Tierney will also join the BIDS board.