Bloomberg and DirectBooks announced a collaboration that brings automated primary bond market workflows to shared clients, expanding Bloomberg’s primary markets solution, and enabling market participants to manage order and allocations messages with greater speed and accuracy.
The workflow is now live, and supports order, allocations and final pricing messages.
The new collaboration brings together DirectBooks and TSOX, Bloomberg’s fixed income focused execution management offering within the Bloomberg EMS, and supports an innovative and integrated workflow for the primary market, delivering electronic workflows and straight-through processing (STP) to institutional investors. The primary markets are where new bonds are issued by borrowers and distributed to investors through underwriters who help ensure the bond is successfully priced, sold and distributed.
Clients using existing standard connectivity can stage order messages to TSOX to be routed directly into the syndicate orderbook via DirectBooks. Allocation messages are then returned electronically from DirectBooks directly to TSOX and booked straight into the OMS resulting in a fully integrated, auditable client workflow that reduces operational risks and enhances real-time position management. This marks a significant improvement to a previously highly manual process resulting in both operational and compliance risks.
Additionally, clients of Bloomberg AIM, a leading order and investment management solution, benefit from built-in integration to this workflow as the newly announced bond details are automatically accessible via AIM as soon as it becomes available on the Bloomberg Terminal. This enables seamless portfolio analysis, compliance, and order routing with no additional setup required by the client.
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“Increasing efficiency and enhancing transparency are key parts of our value proposition at Bloomberg, and digitizing the primary markets advances both,” said Ravi Sawhney, Head of Product, Buyside Execution at Bloomberg. “This integration with DirectBooks delivers a simplified, electronic workflow that elevates the client’s primary market experience. Our ongoing investment in this space enables traders to bring together powerful data insights with fast execution management in TSOX, all within a centralized new-issue workflow.”
“DirectBooks is excited to provide expanded investor access through Bloomberg’s world-class EMS and OMS,” said Rich Kerschner, Chief Executive Officer of DirectBooks. “We are committed to enhancing efficiency across primary markets by providing multiple channels of access. The integration with Bloomberg was driven by client demand and their global distribution. This is a logical next step in our evolution.”
Since the DirectBooks platform went live in late 2020, its underwriter community has grown to 48 underwriters covering fixed income primary issuance across Investment Grade, Emerging Markets, Sovereigns, Supranationals and Agencies, and High Yield. The institutional investor community now reaches over 1,000 accounts ranging from the largest asset managers, pensions funds, and insurance companies to family offices, wealth management, and sovereign entities.
TSOX is part of Bloomberg’s comprehensive Execution Management Solution (EMS) offering, which also includes EMSX for equities and exchange traded derivatives and FXEM which enables FX execution. The solutions support end-to-end workflows and enable clients to dynamically manage positions, portfolio and trading risk, and access leading analytical tools from pre-trade through to post-trade TCA. TSOX easily integrates news, indications, real time market data, pricing and trade analytics into a customizable workspace, so clients can monitor execution quality while improving trading decisions and performance.
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