The enhancements to its Rule Builder (RBLD) solution are designed to assist client execution and improve the efficiency of rule-based trading, based on the increased use of automation – especially in rates trading.
Bloomberg’s RBLD multi-asset automated trading solution allows buy-side traders to create rules within the Bloomberg Terminal that automate actions on selected orders. These auto-routing rules can then be shared, modified, enabled or disabled across a trading desk.
Fixed income rates activity automated through RBLD has more than doubled since 2021, with year-to-date volumes until April 2023, reaching all-time highs for active users and trading activity, according to Bloomberg data. An analysis of trading data showed a nearly five-fold increase in round-lot activity (over $5 million), with more and more clients increasing the size of their automated orders.
Recent developments within the RBLD scope include timed release, which allows clients to write rules for both fixed income and equities trades in order to delay an order by a fixed amount of time or to a fixed point, e.g., a certain market close – enabling them to automatically route orders to market so that they hit a certain benchmark time, or to access other markets outside of their usual trading hours.
Another enhancement has been the order rerun function, whereby clients can set up rules for fixed income trades that immediately re-submit a trade in the event a rules-based trade does not execute, such as limited dealer response or the limit price is not met. This helps increase the likelihood of execution for the same order.
Bloomberg has also introduced integrated economic data to its rules-based workflow, enabling clients to manage risk and volatility trading across asset classes during significant market movements. Orders can be queued to appear in a fixed income EMS (TSOX) during the rules-specified time period, such as 5 minutes prior to or 10 minutes following an announcement.
“As automation is now critical to our buy-side clients’ trading workflows, they need solutions that deliver innovative capabilities that help in both boosting productivity and demonstrating execution performance improvements,” said Ravi Sawhney, global head of trade automation & analytics at Bloomberg.
“Rule Builder clients are able to create and manage automation rules, in real-time, directly on the Bloomberg Terminal. Not only does this minimize their technology lift, it allows them to express their trading intent using the rich data-sets and analytics available across the Bloomberg network.”
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