Bloomberg Tradebook Shines Light on Dark03.03.2016
Agency brokerage Bloomberg Tradebook plans to add greater dark-liquidity insight to its Strategy Analyzer’s In-Trade tool by mid-year.
The new capability builds on Tradebook’s In-Trade predictive analytics tool, which Bloomberg deployed globally in mid-2015, according to Kapil Phadnis, head of algorithmic trading quantitative research at Bloomberg.
Tradebook achieves this by incorporating the Financial Industry Regulatory Authority’s weekly ATS Transparency data into its execution analysis. Since the regulator aggregates all weekly ATS-execution data and then publishes two weeks later, there is a delay. “It’s going to lag since Finra’s data lags,” he acknowledged.
However, Finra’s data is capable of displaying macro liquidity trends.
“For example, if IEX typically has been a big player in a specific stock, clients want to make sure that Tradebook is routing client orders to IEX and getting that liquidity for them,” he said.
Since the new offering relies specifically on Finra’s ATS Transparency Data, Tradebook will launch the new offering only in the U.S., at least for now.
Phadnis does not discount a similar offering for the European market in the future. “If we have interest, we potentially can show the European dark-liquidity pools in real time,” he said. “The European dark-liquidity pools are one step ahead of the U.S. in a certain sense, since they print their trades to a tape in real-time and with attribution.”
Featured image by SkyLine/Dollar Photo Club
Dark pools are an important source of liquidity, but there are pitfalls for traders, Eugene Budovsky of Credit...
Long-time off-exchange trading platform operators Liquidnet and BIDS Trading are being acquired.
Capital markets analyst assesses report that pioneering dark-pool operator is up for sale.
Refinitiv's Bryan Labelle sees a more connected framework helping traders access liquidity.
Markets hold up well amid 'incredible' volume and volatility.