Bloomberg Tradebook, Bloomberg’s global agency brokerage business, has just announced the release of its Relative Benchmark Trading algorithm for its cross-asset trading platform, PAIR {PAIR}. This enhancement gives Bloomberg Tradebook clients the ability to dynamically trade one security relative to a set benchmark, helping traders generate alpha, reduce the costs of trading and better manage risk.
In today’s complex global equity markets, buy-side traders need an integrated system for order and execution management that can help them gain greater control of their trading decisions,” said Michael Baradas, Cross Asset Product Manager at Bloomberg Tradebook. “With the new Relative Benchmark Trading algorithm on the PAIR platform, Bloomberg Tradebook is empowering clients with the tools needed to implement and execute the most effective alpha-generating strategies.
Bloomberg Tradebook’s PAIR platform, launched in 2009, enables traders to simultaneously trade multiple asset classes, including equities, options and futures, globally. The platform is fully integrated with the Bloomberg Professional service, providing Bloomberg Tradebook clients access to a vast library of data to trade multiple securities across asset classes.
With the new Relative Benchmark Trading algorithm, traders are able to leverage Bloomberg’s data to help them capture gains from the dynamic relative pricing of securities by tracking the performance of other instruments that drive the price of that stock. Bloomberg Tradebook clients can select the appropriate benchmark or peer stock from a broad range of tickers available on the Bloomberg Professional service. This new algorithm can also be utilized on an intraday basis, giving clients the ability to construct a trading strategy based on a stock relative to the benchmark.