Bloomberg expands D&I dealer initiative with introduction of new US treasuries white label solution

Bloomberg has introduced a white label solution for US treasuries, allowing a wide range of broker dealers to provide liquidity for trades initiated on its platform as part of its D&I dealer initiative.

New minority-owned broker dealers for US treasuries have been added to the offering, including CastleOak Securities, Mischler Financial Group and Tigress Financial – with more firms expected to be on-boarded and integrated soon.

The treasury offering adds to Bloomberg’s existing D&I dealer programme, which was introduced in 2017 with boutique investment bank CastleOak Securities.

The launch CastleOak’s US corporate bond electronic trading platform, DirectPool, which provides all-to-all services for clients, was supported by Bloomberg. The offering – which has been expanded to include US treasuries – is used by investment managers and bond dealers as a pool of liquidity.

Through Bloomberg’s new white label offering, dealer firms will be on-boarded to its electronic trading solution to provide liquidity for US treasuries.

Dealer firms will be able to engage traditional liquidity providers to make markets for incoming client RFQs, allowing clients to easily include a diverse broker dealer in an RFQ. This will then be routed to a range of counterparties, delivering pricing back to the counterparty which initiated the RFQ.

“We approached Bloomberg in 2016 about an innovative idea using Bloomberg BOLT that would not only help us provide liquidity to our clients, but also level the playing field. The combination of Bloomberg’s technology prowess with our trading capabilities has resulted in a lower cost alternative for clients while still fulfilling best execution requirements,” said David Jones, chief executive of CastleOak Securities. 

“DirectPool’s trading volumes continue to grow year over year; the marketplace has realised that this is not only an efficient way to trade, but also a transparent way for clients to achieve their D&I goals. 

Bloomberg claims that the new offering will deliver a seamless process that expands the liquidity pool while supporting minority-owned broker dealers. 

“We’re excited and proud to work with such an impressive group of firms as we continue to build our D&I initiative,” said Derek Kleinbauer, global head, fixed income & equity e-trading at Bloomberg.

“We remain committed to continually supporting diverse broker dealers, and the US treasury white label solution is a perfect example of innovation and partnership coming together to deliver an efficient and effective offering.”