Bloomberg Tradebook Launches OPTX to Address Best Execution Challenge

Bloomberg Tradebook, a wholly owned agency broker of Bloomberg L.P., is the latest broker to refocus its electronic trading to address buy-side traders’ execution obligations by reforming its agency model with the introduction of OPTX, a new tool to ensure best execution on buy-side trading desks.

Though most say that they are adapting to demand from institutional investors, the new proposition aims to meet evolving regulations which obligate the buy-side to prove best execution to their clients across multiple asset classes. It’s no longer enough to send an execution off to a broker and know that it had slippage of a couple of basis points. This has broadened the scope of reporting and triggered changes in front-end trading technology to stay on top of regulations.

In the meantime, OPTX provides more transparency to investors in terms of execution strategy through its new technology that responds to real-time data and dynamically re-routing between different strategies and counterparties to prove best execution in terms of venue selection.

Buy-side transparency challenge

As such, buy side firms can utilize the OPTX system, which was applied to Bloomberg Tradebook’s equities and options offerings in the United States, to capture, store and analyze these data points as part of proving best execution. Moreover, it provides clients with a single platform that utilizes quantitative data models and analytic-driven selection to route orders to a suite of destinations.

Commenting on the reasoning behind the new service, Glenn Lesko, CEO and President at Bloomberg Tradebook, said: “Optimizing the execution process is critical to creating a competitive return for asset managers. OPTX is addressing some of our clients’ greatest concerns by reforming the agency execution model and adapting to market changes.”

OPTX also encompasses Bloomberg Tradebook’s proprietary Liquidity Liquidity The term liquidity refers to the process, speed, and ease of which a given asset or security can be converted into cash. Notably, liquidity surmises a retention in market price, with the most liquid assets representing cash.The most liquid asset of all is cash itself.· In economics, liquidity is defined by how efficiently and quickly an asset can be converted into usable cash without materially affecting its market price. · Nothing is more liquid than cash, while other assets represent The term liquidity refers to the process, speed, and ease of which a given asset or security can be converted into cash. Notably, liquidity surmises a retention in market price, with the most liquid assets representing cash.The most liquid asset of all is cash itself.· In economics, liquidity is defined by how efficiently and quickly an asset can be converted into usable cash without materially affecting its market price. · Nothing is more liquid than cash, while other assets represent Read this Term-seeking strategies, such as B-Dark, B-Smart and ETF RFQ, as well as the portfolio algorithm and PAIR platform, which leverage data from Bloomberg functionality.

“Bloomberg Tradebook is singularly positioned to deliver this level of best execution, maximizing our agency execution model, unparalleled data and Analytics Analytics Analytics may be defined as the detection, analysis, and relay of consequential patterns in data. Analytics also seeks to explain or accurately reflect the relationship between data and effective decision-making. In the trading space, analytics are applied in a predictive manner in an attempt to forecast the price more accurately. This predictive model of analytics generally involves the analysis of historical price patterns that are used in an attempt to determine certain price outcomes. Analy Analytics may be defined as the detection, analysis, and relay of consequential patterns in data. Analytics also seeks to explain or accurately reflect the relationship between data and effective decision-making. In the trading space, analytics are applied in a predictive manner in an attempt to forecast the price more accurately. This predictive model of analytics generally involves the analysis of historical price patterns that are used in an attempt to determine certain price outcomes. Analy Read this Term capabilities, and extensive counterparty and global network connectivity,” added Lesko.