Bloomberg’s automated trading solution outperforms manual orders by over 30%

Rick Steves

“Automated trading is playing a vital role in augmenting the trading process, and these results make it clear clients are realizing a broader set of benefits beyond increasing their productivity, including improving execution performance. The integration between Rule Builder and BTCA provides clients with a seamless workflow that enhances the entire automated trading process, from creating automation rules directly on the Bloomberg Terminal to then analyzing their impact on trading costs and providing ideas for further optimizations.”

A comprehensive study by Bloomberg has confirmed the effectiveness of its proprietary automated trading solution, Rule Builder (RBLD).

The study analyzed data from Bloomberg’s Transaction Cost Analysis (BTCA), focusing on 23 million orders from January 1, 2022, to December 31, 2023. It compared the performance and execution costs of U.S. and European equity trades conducted through RBLD with those executed manually.

RBLD’s outperformance reached 84% in Europe

RBLD, as a multi-asset automated trading solution, and BTCA, with its detailed transaction cost analysis, represent Bloomberg’s commitment to providing sophisticated technology solutions. These tools facilitate better trading decisions and execution but also ensure compliance with firm policies.

The results were significant, showing a 30% and 36% increase in overall performance for U.S. and European trading desks, respectively, that utilized RBLD. When examining specific equity trades, U.S. orders automated with RBLD outperformed manual orders by 38%, while in Europe, the performance improvement was even more substantial at 68%. These findings underscore the efficiency and consistency RBLD brings to trading, with less variation in performance and better management of trade costs.

The analysis also highlighted RBLD’s capability to exceed manual order performance across various order sizes, emphasizing its adaptability to both U.S. and European markets. For instance, in the U.S., automated orders outperformed manual ones by margins ranging from 25% to 47% depending on the order size, while in Europe, the improvement ranged from 51% to 84%.

Creating automation rules directly on the Bloomberg Terminal

Nicolas Weber, Head of CMS Execution at CA Indosuez Wealth Europe, said: “Automating equities trading has been an important part of our strategy as we continue to see benefits from utilizing a tool like Rule Builder to achieve the results our clients have come to expect from us. Markets continue to move faster, and Bloomberg’s automated trading solution provides us with workflows we need to remain competitive while serving our clients.”

Ravi Sawhney, Global Head of Trading Automation and Analytics at Bloomberg, commented: “Automated trading is playing a vital role in augmenting the trading process, and these results make it clear clients are realizing a broader set of benefits beyond increasing their productivity, including improving execution performance. The integration between Rule Builder and BTCA provides clients with a seamless workflow that enhances the entire automated trading process, from creating automation rules directly on the Bloomberg Terminal to then analyzing their impact on trading costs and providing ideas for further optimizations.”

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