Bloomberg woos Charles Schwab with real-time stock availability feature
13 August 2019 San Francisco
Image: Shutterstock
US bank and broker Charles Schwab has connected its lendable securities portfolio to the Bloomberg Stock Loan Trading Platform in order to access new counterparties and utilise the first-of-its-kind live-streaming of stock availability to reduce trade errors.
According to Bloomberg, the platform, which launched in Q3 2018, offers live integration into proprietary inventory and management systems to live-stream availability and send targeted lists. Live-streaming is controlled by the traders who can to turn on or off specific stocks and manually adjust amounts and tier rates from the market-maker screen a dedicated Bloomberg page.
Users can also analyse counterparties, access historical data, send and receive alerts when stocks are offered or needed and leverages straight-through processing.
Eric Lytle, managing director of securities lending at Charles Schwab, explained that the bank previously only advertised lendable assets on EquiLend’s Next Generation Trading (NGT) platform but NGT was unable to process all of the inventory update messages in real-time.
Lytle said that Schwab suffered from ‘false positives’ as stock availability was only being updated by NGT every 10 minutes and borrowers were making requests on securities that had already been loaned elsewhere. Schwab offers around 15,000 lendable securities each day.
Schwab will continue to utilise the NGT platform but has now begun to make its stock visible for Bloomberg users in order to achieve real-time availability and transparency and connect with a wider group of counterparties.
The bank will be transitioning from the free-form trade now done on Bloomberg’s chat and email services to the Bloomberg Stock Loan Trading Platform.
Traditionally borrows and loans for hard-to-borrow stocks have been communicated via Bloomberg Message and Instant Bloomberg. The new stock loan facility offers four ways of communicating needs and availability, including Bloomberg Message, Instant Bloomberg, Runs Manager, and Bid/Offer List Trading.
Schwab confirmed that it had leveraged Trading Apps to establish connectivity between Bloomberg and its inventory management system with FIS/SmartLoan.
Trading Apps was also responsible for the connection between Schwab and NGT.
According to Bloomberg, the platform, which launched in Q3 2018, offers live integration into proprietary inventory and management systems to live-stream availability and send targeted lists. Live-streaming is controlled by the traders who can to turn on or off specific stocks and manually adjust amounts and tier rates from the market-maker screen a dedicated Bloomberg page.
Users can also analyse counterparties, access historical data, send and receive alerts when stocks are offered or needed and leverages straight-through processing.
Eric Lytle, managing director of securities lending at Charles Schwab, explained that the bank previously only advertised lendable assets on EquiLend’s Next Generation Trading (NGT) platform but NGT was unable to process all of the inventory update messages in real-time.
Lytle said that Schwab suffered from ‘false positives’ as stock availability was only being updated by NGT every 10 minutes and borrowers were making requests on securities that had already been loaned elsewhere. Schwab offers around 15,000 lendable securities each day.
Schwab will continue to utilise the NGT platform but has now begun to make its stock visible for Bloomberg users in order to achieve real-time availability and transparency and connect with a wider group of counterparties.
The bank will be transitioning from the free-form trade now done on Bloomberg’s chat and email services to the Bloomberg Stock Loan Trading Platform.
Traditionally borrows and loans for hard-to-borrow stocks have been communicated via Bloomberg Message and Instant Bloomberg. The new stock loan facility offers four ways of communicating needs and availability, including Bloomberg Message, Instant Bloomberg, Runs Manager, and Bid/Offer List Trading.
Schwab confirmed that it had leveraged Trading Apps to establish connectivity between Bloomberg and its inventory management system with FIS/SmartLoan.
Trading Apps was also responsible for the connection between Schwab and NGT.
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