Bloomberg has added an auto allocation capability to its trading automation offering, reports Traders Magazine. The move is a part of the firm’s efforts to integrate the buy-side workflow into the function. The new solution is expected to reduce T+1 stress for clients outside of the US who trade US equities.
According to Philippa Thompson, head of order management product for the buy-side at Bloomberg, some clients from EMEA and APAC now “log in late at night or early in the morning to align to US settlement cycle operations”. With automated trade allocation, human error and bottlenecks in the allocation workflow could be avoided, leading to a more streamlined process.
The new solution applies the capabilities from Bloomberg’s Rule Builder (RBLD) automated trading offering to “write conditional rules to automatically allocate orders post-trade for listed products in AIM”, explains Chris Clodius, Bloomberg’s global head of buy-side trade automation. AIM is the firm’s order and investment management technology solution.
Expanding automation from trading execution to trading allocation is “especially important in markets that require fair allocation”, where requirements are that firms “must show they are being fair to all underlying representative clients participating in any order”.
Thompson points out that trade allocation is currently still “a manual touch point for many traders”, but with the new solution, clients trading listed products will be able to achieve “zero touch trading” using rules-based tooling.
