Bloomberg has increased transparency around trading algorithms provided by Exane BNP Paribas by integrating access to the investment company’s Order Status Update feedback channel, which gives European equities traders insight into the algos, with its EMSX execution management system.
The integration builds on Bloomberg’s use of Tag 30 FIX protocol messages to show algo traders using EMSX where trades have been executed, and provides information on where the Exane BNP Paribas router is posting trades prior to execution. This is achieved by each trading algo delivering real-time alerts based on pre-determined signals and market conditions directly to the EMSX blotter using the FIX protocol. Alerts include dark venue postings, the quantity of an order scheduled for the close, the estimated start time or end time of an order, and unique alerts based on parameters set by a trader.
Palak Patel, global head of trading applications and connectivity at Bloomberg, explains: “Before, traders knew which venues had been used to execute trades. Now, they can also see in real time where trades have been sent, regardless of whether or not they are executed. This enables traders to make more informed execution decisions, perhaps changing venues before trades are executed or adjusting the parameters of an algorithm.”
The integration, which is not exclusive to Exane BNP Paribas and could be replicated by other brokers, has been tested and is available as a free upgrade within EMSX for traders working with Exane BNP Paribas.
Patel comments: “We work with all the brokers in our community to enhance EMSX and are always open to extending the data that brokers provide as traders want more transparency and additional data points can support that.” Looking forward, he said Bloomberg’s next step towards increasing trading transparency is to consider how information in brokers’ child routes could be summarised and delivered to traders.