Bloomberg has gone live with a new US Treasury (UST) algorithmic dealer offering, providing buy-side clients with access to pools of liquidity usually available only on dealer-to-dealer trading platforms.
The first trade using the offering was completed between Morgan Stanley and “a leading buy-side firm”.
Bloomberg’s new UST dealer algos have also received support from Citi, JP Morgan and RBC Capital Markets, with additional dealers expected to join the solution this year.
“Expanding our client offering through UST dealer algos aligns with the natural evolution of the markets, enabling us to meet client needs by delivering greater efficiency in executing US Treasuries,” said Adam Peralta, head of US rates e-trading at Morgan Stanley.
“We are committed to meeting our clients’ needs while staying at the forefront of technological developments in the US Treasury markets.”
The solution allows clients to access the algo strategies of dealers on Bloomberg’s Fixed Income Trading (FIT) offering.
According to the firm, dealer algos offer clients the opportunity to execute larger size trades, at tighter pricing, with a reduced market impact.
Bloomberg’s interfaces, BLOT <GO> and TSOX <GO> allow clients to monitor execution slices in real time and adjust algo parameters, which it claims to enable enhanced trader control.
Bloomberg FIT is integrated with Bloomberg AIM and Bloomberg TOMS, allowing existing users of these solutions to benefit from the new offering.
“Being first to offer the buy-side with access to dealer algos is part of our ongoing commitment to provide clients with innovative and market leading solutions. Traders need to move quickly to capitalise on opportunities and maintain their competitive edge,” said Derek Kleinbauer, global head of fixed income and equity e-trading at Bloomberg.
“Our new UST dealer algos offering provides clients with an efficient way to access a deeper set of liquidity sources to get trades done quickly with confidence in the price levels, while minimising information leakage.”