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Buy-Side Executives Forecast Agency Broker Consolidation

July 27, 2011

New York — Buy-side traders, facing lower volatility and
volumes, say that the number of agency brokers will decrease
over the next year, according to comments released today by
Bloomberg Tradebook, a leading global agency broker.

Viewpoints on consolidation in the industry came at a Bloomberg
Tradebook forum called “The Future of the Buy-side Trader,”
which was attended by senior buy-side traders and heads of
institutional trading desks at leading hedge funds and asset
management firms representing more than $1 trillion in assets
under management. The invitation-only event was simulcast live
in Boston and New York on July 21st.

The buy-side executives agreed that the most important factors
in selecting an agency broker are independent research, trade
ideas and educational forums that keep them abreast of the
latest issues, trends and innovative technology solutions.
Another key factor cited was sales-trading desk support, but
liquidity and flow were of much less importance in selecting an
agency broker, the group noted.

When asked what kind of support they want most from their broker
dealers, the group said color on stocks and the market, followed
by a trading desk to work orders and evaluations of the
effectiveness of potential tools and algorithms.

Buy-side executives at the forum also said that their future
success depends on access to better algorithms, better workflow
integration and better insight and education. In regards to pre-
and-post trading tools, the group noted that they rely on
transaction costs analysis (TCA) in real-time and end-of-day
(EOD) reports for additional transparency.

“Buy-side traders are under intense pressure in the marketplace
and expect their agency brokers to add value to the trade, give
them high-quality market intelligence and provide innovative
technology R&D to help maximize their performance,” said Ray
Tierney, President and CEO of Bloomberg Tradebook.

“The Future of the Buy-Side Trader” was the first in a series of
Bloomberg Tradebook Buy-Side Forums. The series is designed to
bring leading market players together to discuss the latest
issues, trends and tools to help institutional investors succeed
in the marketplace.

For more information on Bloomberg Tradebook go to

About Bloomberg Tradebook

Bloomberg Tradebook is Bloomberg’s agency broker that partners
with the buy-side and sell-side to provide high-quality
liquidity, market insight and customized solutions based on
innovative technologies. Founded in 1996, Bloomberg Tradebook
offers its customer base trading solutions for equities,
futures, options, and foreign exchange (FX) to actively manage
complex trading strategies across more than 100 global
exchanges. By providing direct access to independent research
analysts and commission management services, Bloomberg Tradebook
provides clients with numerous ways to find and implement smart
trading ideas. Bloomberg Tradebook is available on the
Bloomberg Professional service.

Media Contacts:

Pam Snook, Bloomberg LP,, +1-212-617-

Sophie Fischman, Cognito-US,, +1-646-

Stuart Macaulay, EMEA,, +44-20-

Anne Karumo, APAC,, +65-8112-6409