Bloomberg Tradebook has launched a Request for Quote (RFQ) service specifically for exchange-traded funds (ETFs) that will allow traders to access liquidity from buy-side ETF providers in the U.S. and Europe.
The service aggregates buy-side liquidity for ETFs and provides institutional investors with an anonymous solution for trading more than 1,500 ETF products.
It is the latest in a line of RFQ efforts from various platform providers. Bloomberg Tradebook claims that its platform is the first of its kind to source liquidity from a network of buy-side providers and exchanges, however other platforms offering RFQ facilities, such as Tradeweb and the LSE, have also been launched in the last year.
The service is intended to give institutional investors a better picture of the ETF market place, as well as optimal execution opportunities.
Sabrina Gagliotta, head of execution consulting at Bloomberg Tradebook, told ETF.com: “Since 2008 ETFs in Europe have already started moving from the OTC market to listed products due to concerns about counterparty risk. Mifid II will bring more transparency to the ETF market in Europe as all ETF trades will be required to be reported to an exchange. Our Tradebook ETF RFQ is electronic, and will be ready to report electronically to an exchange when the regulations are finalised. Our audit trails also provide full transparency around order routing decisions.”
David J. Abner, head of capital markets at WisdomTree Asset Management explained that the benefits of the service allow its clients to access all available liquidity sources when utilising WT funds. “The Bloomberg Tradebook Electronic RFQ brings ETF trading into the 21st century with an automated, transparent and efficient mechanism for executing large-size ETF orders electronically. This is another advancement in ensuring investors can access liquidity in the broad range of ETFs available in this rapidly growing industry,” he said.
Bloomberg Tradebook's ETF RFQ platform is fully integrated with the Bloomberg Professional service. It means that subscribers can quickly and easily access information about market size, depth and performance before deciding to initiate a trade electronically using the Tradebook service.