Bloomberg Tradebook has launched a new Order Handling Facility (OHF) for the trading of US listed stocks.
The platform, which automatically integrates the NYSE with other fragmented pools of liquidity in the hunt for best execution, has started trading with the 28 listed stocks in the Dow Jones Industrials Index. All remaining listed stocks will be added over the next few weeks, says the vendor.
Bloomberg says the mix-and-match approach should serve to enhance liquidity in the primary market rather than replace it, as client's orders interact with the various listed venues in proportion to their quoted liquidity.
Kim Bang, president of Bloomberg Tradebook, says the OHF helps solve three key problems facing listed traders: "First, it provides them with the capability to trade more efficiently on the NYSE. Second, it seamlessly consolidates liquidity across the various venues. Finally, it automates the breakup up of a large order into smaller pieces, a process that many of our traders are currently doing manually to minimise impact but also to avoid being 'pennyed'."