Bloomberg Tradebook Launches Smart Algorithm Focused on European Markets and Fragmentation Challenges

Given the challenges of trading stocks in global equity markets, Bloomberg Tradebook has launched SOAR (Smart Order Algorithmic Routing) to address investor needs for a mechanism by which to best aggregate and find and efficiently extract liquidity. SOAR(SM) represents an advanced approach to dealing with European market fragmentation, according to Bloomberg Tradebook's Gary Stone. Whether trading an active stock or less liquid security, SOAR offers a customizable approach to seeking best execution by providing traders with a liquidity-based and price-based approach to order placement and execution.

SOAR intelligently routes orders to venues based on best price and liquidity considerations. The algorithm automatically probes for hidden liquidity (Dark pools, Icebergs). Bloomberg Tradebook has provided advanced transparency to support SOAR. Since 2003, Bloomberg Tradebook's trading monitors have displayed a consolidated view of the different market venues' depth and a virtual consolidated tape of executions in all the venues. Now, on that same market consolidated depth monitor, traders can watch, in real time, SOAR's order handling decisions. A complete electronic record of SOAR'S order handling decisions can be accessed from the trading blotter. Bloomberg Tradebook believes that many buyside clients may find that the real-time monitoring capabilities and the complete electronic audit trail satisfies MiFID requirements to share execution and order handling information to assure that orders are properly handled.

Stocks may trade more or less actively; so, SOAR enables traders to choose between two different sweep styles - liquidity and price. Liquidity sweep may be the preferred way to trade a very active stock where the trader's goal is maximum liquidity capture while seeking a superior average price within an effective price range. For less liquid stocks, a price sweep can be employed. The price sweep removes liquidity one price level at a time up to the trader's ultimate indicated limit price. There is greater opportunity for price improvement through sophisticated replenishment and over-sizing logic.