Bloomberg Launches Global All-to-All Bond Trading Service03.15.2022
Bloomberg announced the launch of Bloomberg Bridge, a new global all-to-all service that supports intermediated trading for corporate and emerging market bonds.
Clients will be able to launch Request for Quote (RFQ) tickets for applicable securities or respond to an RFQ to seamlessly execute a trade, supported by dedicated Goldman Sachs intermediation desks.
Bloomberg Bridge is scheduled to go live in Europe in Q2 2022 and subsequently in the US and APAC. Bloomberg Bridge is designed to offer users the ability to source a deep pool of liquidity from Bloomberg’s global network of institutional investors and dealer firms, which currently number over 3,700.
All-to-all trading, which allows buy-side institutions to participate in providing liquidity and also gain access to deeper liquidity has seen consistent growth. Recent research from Coalition Greenwich found that the use of all-to-all trading for U.S corporate bonds increased from approximately 5% in 2017 to 12% in 2020.
“The introduction of Bloomberg Bridge to our all-to-all offering allows us to streamline and optimize trading workflows, and provides our clients with access to greater liquidity,” said Ben Macdonald, Global Head of Enterprise Products at Bloomberg. “We are focused on delivering value to our clients through the continued enhancement of our electronic trading solutions that support our clients’ trading strategies in the most efficient way possible.”
Bloomberg Bridge will expand on the intermediation services currently supported by Bloomberg in the United States.
This increases the number of trade inquiries that traders can respond to without their intervention.
Less than 3% tax-free fixed coupon U.S. municipal bonds trade on a daily basis, impacting price discovery.
The faster set up of new bonds means clients can service early secondary execution more quickly.
Tokenization of bonds is one of the initiatives financial institutions are most eager to pursue.
BlackRock estimates bond ETFs will reach $5 trillion in assets by the end of the decade.