Bloomberg Launches U.S. Treasury Dealer Algos

The first-to-market offering expands buy-side access to liquidity through dealer algos

NEW YORK, Feb. 3, 2025 /PRNewswire/ -- Bloomberg today announced the first trade completed using its U.S. 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, JP 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. Bloomberg's key interfaces, BLOT and TSOX allow clients to monitor execution slices in real time and adjust algo parameters, enabling enhanced trader control. Bloomberg FIT is seamlessly integrated with Bloomberg AIM and Bloomberg TOMS, and clients of these solutions can also benefit from the new offering.

"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 U.S. 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 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, Head of U.S. 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. "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 U.S. 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.

Bloomberg Electronic Trading Solutions (ETS) are used by leading financial institutions to trade efficiently in over 175 markets around the world. More than 9000 client firms use Bloomberg ETS to access industry-leading depth and breadth of liquidity across asset classes from over 1,500 dealers globally. Bloomberg ETS provides market participants with comprehensive solutions across the trading lifecycle, including robust price transparency, analytics, automation and execution, powered by Bloomberg's high-quality, multi-asset class data and tools.

About Bloomberg
Bloomberg is a global leader in business and financial information, delivering trusted data, news, and insights that bring transparency, efficiency, and fairness to markets. The company helps connect influential communities across the global financial ecosystem via reliable technology solutions that enable our customers to make more informed decisions and foster better collaboration.

For more information, visit Bloomberg.com/company or request a demo.

*BTBU is offered by Bloomberg Tradebook LLC ("Tradebook US"), a registered broker-dealer with the U.S. Securities and Exchange Commission, a member of the U.S. Financial Industry Regulatory Authority, Inc., U.S. Municipal Securities Rulemaking Board and the U.S. Securities Investor Protection Corporation ("SIPC"). For more information about SIPC visit www.sipc.org or call (202) 371-8300.

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SOURCE Bloomberg