Identifying Certainty in an Uncertain Fixed Income World – Bloomberg Trading Solutions
May 5, 2016 \ 11 Comments
Full Article: Bloomberg Trading Solutions
Being able to access fully electronic order book-driven markets, RFQ markets and voice markets directly from a single trading platform is the perfect hedge in today’s evolving fixed income landscape. Bloomberg’s AIM order management system can provide institutions and their fixed income traders with a truly integrated OEMS solution to access liquidity.
Were I to be starting a fixed income trading platform today, or any sort of new fixed income service the first call I would make would be BBG. Immediate access to 650 institutions and 3000 traders. I am never going to be able to persuade all those users to connect to me, so piggy back on BBG. Presumably similar logic pushed UBS to enter into the exclusive futures execution model in the early 2000’s’ If I were setting up a fixed income trading operation and looking to electronically connect to trading venues BBG offers a cheap and easy way to… Read more »
Charlie, should you be posting here if you don’t understand? Please be honest. You are so off on your analysis. “Immediate access to 650 institutions and 3000 traders”–>THAT IS NOT TRUE FOR ANY TRADER. The terminal represents LEGACY DtoC RFQ, WITH DEALERS ALWAYS HAVING LAST LOOK…yes, even with magenta. Each dealer must APPROVE all enablements to trade, so again you WILL NOT HAVE ACCESS TO ALL THOSE OTHER TRADERS AND INSTITUTIONS. Think of the terminal as a MIRROR to your phone dealer coverage, but something less. That Bloomberg article is just panic marketing as they are on the edge of… Read more »
A marketing piece for Bloomberg AIM. Not their usual selling MO but a nice effort. And there is a lot to be said of connecting 3000 traders across 650 firms but my guess is that TradeWeb and maybe even MarketAxess are large enough even if haven’t reached those levels. But Bloomberg offers competing pools of liquidity with many other offerings out there and it has had varying degrees of success in connecting those users via execution platforms across various products. This creates a couple of problems with positioning AIM as per the piece. Is Bloomberg suggesting that AIM will connect… Read more »
Average journalism with shameless advertisement for AIM which is not all things to all people. Buysides are looking for more lightweight solutions away from desktop focus
Just pointing out that this ‘article’ is clearly written by Bloombergs Trading Solutions Group where TOMS as well as AIM is run out of. Therefore think we should be viewing it as marketing/advertising vs. an ‘article’.
Doesn’t mean any of the points and counterpoints made are wrong and probably makes it fair game from all angles given not a journalistic piece.
“Things That Make You Go Hmmmm….” –C&C Music Factory (featuring Freedom Williams) “Traders and their institutions have to make thoughtful decisions on partners to make sure that they have assured access (connectivity) to the venues that matter and can leverage trading functionality to navigate liquidity regardless of how the market evolves. Being able to access fully electronic order book–driven markets, request-for-quote markets and voice markets directly from a single trading platform is the perfect hedge in today’s evolving fixed income landscape.” (Goose nodding head vigorously, then slowly stopping and donning quizzical look). But, since when does Bloomberg allow customers in… Read more »
Exactly! If BBG truly connected to all venues then this would be a monumental shift. BBG does a lot of things. Many of them not well, largely because there’s no incentive for them. However, they have the most vast network in a market that has tons of good ideas, though everyone is trying to build the network. For BBG, why not solidify your place by allowing others to leverage your network and then charging for that use? The more venues that connect, the more valuable that network becomes. I suspect this not their plan though. Instead, they try to compete… Read more »
Bloomberg is losing subscribers as the industry continues to consolidate and they are doing what they should be doing – leveraging their assets. While we can all sit back and judge the ever-blurred boundaries between their journalists and their business plans (similar to the Clintons and the media) there is an important factoid in the presentation that is too often missed. Unfortunately it’s buried under a poorly-chosen lead question of “Are you reducing your ability to supply liquidity to your customers?”. The responses don’t really answer the question, but in the majority response lays the symptom of the problem. “Lack… Read more »
Just pointing out that this ‘article’ is co-authored by Ray Tierney, who heads up their Trading Solutions Group. Also think this was released on their blog so don’t think we can use this as an example of “..blurred boundaries between their journalists and their business plan..”.
Its all about the network! Although in this product offering simply the number of venues that a user can access? Could a stand alone company offering wide access be just as attractive? As I understand it BBG charges extra for this trading access as its part of TOMS, do I have that right? So perhaps a competitor could compete. Having said that BBG does a great job of integrating the execution with downstream processes so a competitor would have to offer more than connectivity. I am struggling to name a competitor and with 60% or so of the buy side… Read more »
We all know that this article is a commercial, so I will cut the authors some slack regarding the facts of their case. I do wonder if they laughed to themselves when they wrote: “Change will continue to come in unexpected forms and from a multitude of directions, which makes sourcing liquidity more important than ever. In today’s uncertain climate, waiting and inaction are not options. For 30 years, the world’s fixed income leaders have turned to Bloomberg first for transparency, powerful analytics and unique means of bringing dealers and their customers together to foster communication and execution.” In other… Read more »
Blackrock’s Richard Prager: The Liquidity Is Out There – Institutional InvestorMarch 18, 2016
Everyone is Worried About the Thing Markets Need Most, But They’re Not Asking the Right Questions – Business InsiderMarch 25, 2016
US Companies Overpaying for Bonds; Banks May Be to Blame – ReutersMarch 31, 2016