Bloomberg Links to BNY Algorithms

NEW YORK—BNY Brokerage is jumping on the Bloomberg bandwagon.

The group, which is a subsidiary of the Bank of New York and a member of the BNY Securities Group, announced recently that it has integrated its algorithmic trading tools with Bloomberg's Professional terminal service.

The deal with BNY Brokerage will allow users on Bloomberg's execution management system (EMS) to connect to BNY proprietary algorithmic trading strategies and control how those algorithms work, according to Bloomberg officials. EMS has a client base of more than 260,000 financial professionals.

The effort is a chance for clients to have "flexibility and choice in how they work their orders," says Carey S. Pack, president of BNY Brokerage.

The service will "help our users consolidate their trading activity," says Ken Cooper, global business manager for Bloomberg trading systems. He touts Bloomberg's EMS trading, order analytics, IOIs (indications of interest) matching engines and real-time total cost analysis (TCA) as beneficial to BNY customers.

Barclays Capital (BarCap), the investment banking division of Barclays Bank, announced last month that it is pioneering the automated trading of equity variance swaps on its Barclays Automated Real-time Execution (BARX) via the Bloomberg terminal service (DWT, Jan. 23).

In November, Bloomberg announced the debut of a customer-to-dealer, multi-bank request-for-quote (RFQ) electronic trading system for repurchase agreements (repos) for Europe. The service is open in the specials market for governments and credit (DWT, Nov. 28, 2005).

Last year, BNY Brokerage integrated its electronic platform DEx (Direct Execution Service) into Pipeline's Alternative Trading System (ATS). DEx users can access Pipeline's ATS directly through SonicPort, DEx's front-end execution management system (DWT, Aug. 8, 2005). Meanwhile, BNY last month was granted a patent in the U.K. for a two-way electronic messaging interface model that facilitates communication between investment managers and their custodian banks (DWT, Jan. 16).

The Bloomberg Professional offering supplies users with interactive terminals that provide financial news, data and analytics services. Multiple systems clients pay $1,425 per month per workstation while single systems clients hand over $1,700 per month per workstation.