Market data and trading solutions provider Bloomberg has enhanced the indications of interest (IOI) and trade advertisement feature of its Sell-Side Execution and Order Management System (SSEOMS).
The upgrade allows sell-side firms to use both Bloomberg and internal data to automatically disseminate IOIs and trade advertisements via the SSEOMS. Now, brokers can send information to holders or active traders of a particular stock based on their US Securities and Exchange Commission filings.
The new functionality reduces a process that previously took half an hour per order to less than a minute, according to Geoffrey Patsch, global manager for SSEOMS. “A lot of times, brokers will either buy independent systems or create their own databases to do all this, but Bloomberg has all this information, so we wanted a way to get that merchandise out to the people that matter most at the click of a button,” he told theTRADEnews.com.
The feature can also ensure that IOIs or trade advertisements are only sent to a broker’s relevant contacts at a buy-side firm, and that orders are not accidentally sent back to the buy-side.
As well as speeding up IOI dissemination for the sell-side, Patsch contended the new functionality also makes the process more manageable for the buy-side. “Buy-side traders are able to see the liquidity they’re most interested in and they don’t have to wade though all the spam in the IOI marketplace,” he said.
The upgraded functionality also allows the buy-side trader to respond to brokers’ IOIs using instant messaging, reducing the information leakage associated with telephone orders. “If a buy-side trader calls a broker, that broker yells out to his desk, calls get made and people know there is a large buyer or seller in the marketplace,” said Patsch. “The OMS gives the buy-side a way to respond to sell-side without revealing their information.”