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Bloomberg Tradebook forges dark pool transparency agreements

First Published 1st January 1970

B-Dark algorithm to offer real-time venue transparency in dark pools

Raymond M. Tierney III, CEO & President, Bloomberg Tradebook LLC: "For far too long the buy-side has tolerated a critical lack of information when trading in dark pools and that needs to change."

BLOOMBERG TRADEBOOK® has announced arrangements with dark liquidity providers to deliver full transparency and visibility of dark pool executions. Under the new arrangement Tradebook aims to show traders where their orders are being filled in real-time, thus providing additional insight that can enable more informed decisions about where to direct order flow and discretionary trades.

Tradebook also launched its B-Dark algorithm, which contains an analytic to deliver real-time venue transparency in dark pools, and aims to allow traders to execute dark liquidity orders with more control and visibility.

"For far too long the buy-side has tolerated a critical lack of information when trading in dark pools and that needs to change," said Raymond M. Tierney III, the new Chief Executive Officer and President of Bloomberg Tradebook LLC. "We are encouraged that dark pool providers are joining us to ensure that dark liquidity and algorithmic trading is safer, more fair and open throughout the industry."

Bloomberg Tradebook is increasing access to information with the release of its new B-Dark algorithm, a dark only version of the B-Smart SM algorithm, which helps traders seek optimal execution prices.

B-Dark can enable traders to control more of their workflow by designating urgency levels and specifying the level of aggression with which the algorithm will seek dark liquidity. In addition, B-Dark provides anti-gaming logic, including order randomization and real-time venue slippage analysis, to protect traders from toxic flow that sometimes resides in dark venues.

"Bloomberg Tradebook's clients expect us to do much more than supply connectivity," added Mr. Tierney. "The industry arrangements, coupled with our new B-Dark algorithm, give our clients unprecedented transparency and control, allowing them to make split-second decisions about best price executions in both lit and dark markets."