Bloomberg and CLSA Join Forces to Form Global Tradebook
Global Tradebook to Offer 24-Hour Global Integrated Equity Trading; 1 Source, 65 Countries, 115,000 Desktops
NEW YORK and HONG KONG, May 19 /PRNewswire/ — Bloomberg Tradebook(R) L.L.C. and CLSA Global Emerging Markets today announced the formation of Global Tradebook, a global equity execution, matching, order-routing and settlement solution aimed at institutional investors and broker-dealers worldwide.
Global Tradebook will give investors and brokers one-stop access to straight-through processing of international orders in 65 countries, directly accessed through their Bloomberg systems and through a 24-hour trading desk. Global Tradebook will be rolled out by market beginning in the third quarter of 1999.
Under an exclusive agreement, Global Tradebook brings together CLSA's Global Execution Services expertise trading, executing and settling in 65 countries throughout the world with Bloomberg's popular and rapidly-expanding Tradebook – Bloomberg's electronic communications network (ECN) for U.S. equities (1).
Kevin Foley, President of Bloomberg Tradebook, said: "This is the next big step in ECN innovation: applying the customer service and the unique applications of Tradebook to the global equity markets. With this deal we are taking the ECN revolution global, but we are also recognizing that the most important issues in the international arena remain execution quality, price, market impact, and settlement. In that regard, we've been very impressed with CLSA's people and their high standards of quality. For trading, executing and settling equities globally, especially in the most difficult markets, they are second to none. With announcement we believe Tradebook and CLSA together will set the standard for global agency brokerage." Jonathan Slone, Managing Director at CLSA said: "Our link with Bloomberg will significantly enhance our ability to deliver superior liquidity and executions to our client base while maintaining our position as an agency broker.
"A big differentiating factor between Global Tradebook and a simple ECN, is that Global Tradebook will give international investors and brokers access not only to 'upstairs' liquidity within the system or to local stock markets, but also to a 24 hour agency execution desk with over 400 institutional client relationships globally," said Mr. Slone.
Global Tradebook will be fully integrated with Bloomberg Tradebook's leading edge order management and trading applications whilst CLSA will be setting up a special purpose vehicle called G-Trade Services to handle business derived from Global Tradebook.
Mr.Slone said: "Global Tradebook will widen CLSA's current wholesale global execution services business, which has up to now been focused on the needs of large passive and active portfolio traders and broker dealers who specialize in international markets."
As a wholly-owned subsidiary of Bloomberg L.P., Bloomberg Tradebook already delivers its clients the benefit of unique integration with Bloomberg portfolio tracking tools, order management, and analytics for international equity markets. And it does so from 115,000 desktops used by 350,000 professionals worldwide.
"Global Tradebook allows clients to integrate in seamless fashion all their equity trading on one platform," said Mr. Foley. "And it extends Tradebook innovations like 'Bang', 'Reserve', 'Discretion', 'Smart Pegging' and others to the international arena. That's why we think this is such a big plus for clients."
Global Tradebook will take advantage of CLSA's straight through processing capabilities which allow clients to trade fully electronically in 65 countries using automated trade and settlement messaging. Using direct links to client's front and back office systems, no manual intervention is necessary from trade input on through final settlement. Mr. Slone notes that "full automation considerably increases the reliability of handling complex trades across multiple markets in multiple names for multiple accounts."
Both Global Tradebook and G-Trade Service will provide full FIX connectivity to the front office with other back office solutions such as Global Oasis and SWIFT. G-Trade Services' 24 hour global back office allows clients with direct back office links to access settlement and clearing information on a live time basis for all 65 countries.
Michael Bloomberg, CEO and Founder of Bloomberg LP notes that "Global Tradebook is an important piece of our strategy to add more value to more clients. We believe this agreement with CLSA helps our global equities position enormously."
Gary Coull, Chairman of CLSA, said: "Global Tradebook is part of CLSA's overall strategy to provide institutional investors services that are focused on clearly differentiated competencies and added value. In the same way our Global Emerging Markets Group provides research driven solutions to institutional emerging market fund managers, Global Tradebook provides a technology driven solution to the increasingly complex needs of global trading desks."
About CLSA Execution Services
CLSA Execution Services, a global leader in portfolio trading, portfolio liquidations, quantitative strategies and wholesale execution is a fully-owned division of CLSA. CLSA Execution Services actively trades in 65 countries around the world through a dedicated team of traders and back office staff. As a leader in electronic trading and straight through processing solutions, CLSA Execution Services also employs a technology solutions team which tailors technical solutions to fit client requirements.
CLSA Global Emerging Markets is a leading provider of brokerage and investment banking services in the emerging markets of Asia, Latin America and Europe. Headquartered in Hong Kong, employing over 600 people in 28 countries, CLSA's research centered operations have gained international recognition. CLSA Global Emerging Markets conducts research into over 2,500 companies worldwide. Through regular company visits, CLSA produces more than 1,500 items of research per year. Although primarily an equity house, CLSA is active in equity-linked and debt capital markets.
About Bloomberg Tradebook L.L.C.
Bloomberg Tradebook L.L.C., a wholly-owned subsidiary of Bloomberg L.P., is an electronic agency broker of equity securities operated in compliance with the SEC's newly-implemented Regulation ATS. Bloomberg Tradebook is an approved ECN with full integration into the US National Market System for Nasdaq securities. An innovator focusing on new opportunities offered by regulatory and technological change, Bloomberg Tradebook has more than tripled in volume since the beginning of 4Q 1998. Tradebook is currently averaging approximately 32 million shares matched daily. Tradebook's services in US markets are offered in association with B-Trade Service L.L.C., a wholly-owned subsidiary of the Bank of New York Company, Inc. B-Trade Services is a single-purpose entity handling sales trading, operations and trade execution of U.S. equities for Bloomberg Tradebook.
About Bloomberg L.P.
Bloomberg L.P. is an information, news and media company encompassing Bloomberg Financial Markets, a global, multi-media-based distributor of information services, combining news, data and analysis for financial markets and businesses. Bloomberg provides real-time pricing, historical pricing, indicative data, analytics and electronic communications 24 hours a day through 115,000 systems used by 350,000 financial professionals in 100 countries worldwide. Bloomberg News, with 700 reporters in 80 bureaus, is live 24 hours over the BLOOMBERG and is carried in over 850 newspapers worldwide. Bloomberg L.P.'s website is located at www.bloomberg.com
(1) ECN - An "ECN" is an "electronic communications network," a regulated type of agency broker that continuously matches customer buy and sell orders while providing those orders with direct electronic access to the local market.
Source: Bloomberg L.P. 05/19/99
Chris Taylor of Bloomberg L.P., New York,
Jonathan Slone of CLSA Global Emerging Markets, Hong Kong
Kevin Foley of Bloomberg Tradebook L.L.C, New York
Anthony Blumberg of CLSA Global Emerging Markets, New York
Aubrey Ho of Gavin Anderson & Co (HK) Ltd
Web site: www.bloomberg.com