Bloomberg announced the first trade completed using its US Treasury (UST) Dealer Algos offering which provides buy-side clients with access to wide pools of liquidity usually available only on dealer-to-dealer trading platforms.
The first trade was completed between Morgan Stanley and a leading buy-side firm. In addition to Morgan Stanley, UST Dealer Algos are also supported by Citi, J.P. Morgan and RBC Capital Markets with additional dealers expected to join the offering in 2025.
Bloomberg’s UST Dealer Algos solution enables clients to access the algo strategies of dealers on Bloomberg’s Fixed Income Trading (FIT) offering. Dealer algos offer clients the opportunity to execute larger size trades, at tighter pricing, with a reduced market impact.
“Expanding our client offering through UST Dealer Algos aligns with the natural evolution of the markets, enabling us to meet client needs by delivering greater efficiency in executing US Treasuries,” said Adam Peralta, head of US Rates E-Trading at Morgan Stanley. “We are committed to meeting our clients’ needs while staying at the forefront of technological developments in the US Treasury markets.”
“We are excited to collaborate with Bloomberg to provide broader access to our new Rates algos. Leveraging our market leading franchise, futures algo capabilities, and deep proprietary liquidity pool, we offer the very best in e-trading tools and execution quality. We look forward to working with our clients to meet the demands of electronic trading in this rapidly changing environment,” said Jamie Mortimore, global head of Rates E-Trading at Citi.
“We are excited to be bringing our market leading UST algo to more clients via the Bloomberg offering,” said Tonia Steck, managing director and head of US Institutional Rates and North American FX Sales at RBC Capital Markets. “Clients are looking for differentiated ways to access liquidity and our goal is to continue to be a leader in providing electronic solutions to clients across all macro products.”
“Being first to offer the buy-side with access to dealer algos is part of our ongoing commitment to provide clients with innovative and market leading solutions*. Traders need to move quickly to capitalize on opportunities and maintain their competitive edge,” said Derek Kleinbauer, global head of Fixed Income and Equity E-Trading at Bloomberg, in a statement. “Our new UST Dealer Algos offering provides clients with an efficient way to access a deeper set of liquidity sources to get trades done quickly with confidence in the price levels, while minimizing information leakage.”
This follows the recent launch of Bloomberg’s FitStreams solution for US Treasuries, which allows traders to view and trade on multiple custom, bilateral prices per instrument. Clients can then trade directly with the dealer streaming the best price. Information leakage is minimized as only the selected dealer is sent the request for trade, and there is no reporting to other dealers immediately after the trade takes place. This also significantly limits market impact for the trade counterparties.