NEW YORK — Bloomberg Tradebook and financial technology company UAT today announced a software platform and adjustable algorithm called Boomerang(SM) that is designed to deliver commission savings to asset owners and to enhance trader productivity for money managers in the multi-trillion dollar  sub-advised and externally managed industry.
“This offering comes at a time when no one in the industry can afford to leave money on the table. This program represents a win for everyone involved – the asset owners, money managers, and ultimately, fund shareholders and plan beneficiaries of these investment portfolios,” said Ray Tierney, President and Chief Executive Officer of Bloomberg Tradebook. “Boomerang expands Bloomberg Tradebook’s commitment to maximize commission savings potential and enhance execution quality for our clients.”
A central component of Bloomberg Tradebook’s commission recapture solution is the Boomerang algorithm. Traders at money management firms can adjust the algorithm settings to define low-touch orders from high-value order flow. Orders identified as low touch are automatically executed without further involvement from traders, thus saving time.
“UAT and Bloomberg Tradebook have delivered an innovative technology solution that brings increased efficiency to buy-side traders,” said Laurie Berke, Principal at TABB Group. “By addressing the long-unresolved issues around automating the execution of low touch orders, Boomerang fills a need in the market that has been unaddressed for years.”
Asset owners, including mutual funds, insurance and pension plans, frequently outsource the management of investment portfolios to external money managers in order to leverage a manager’s expertise, performance, risk profile or brand strength. Commission recapture programs help asset owners reduce trading costs by recouping part of the brokerage commissions incurred by the fund’s money managers, but long-standing inefficiencies have hindered the effectiveness of these programs. Asset managers can incorporate the Boomerang algorithm into existing commission recapture programs or deploy it as the sole commission savings solution.
“Money managers and asset owners can now have a streamlined trading process that drives measurable performance gains and operational efficiency,” said Tom Warren, President of UAT. “Boomerang is a productivity tool that saves time for money manager traders, allowing them to automate execution of low- touch orders in favor of focusing on high touch, high-value trading situations.”
Bloomberg Tradebook and UAT executives will introduce the Boomerang(SM) Algorithm and commission recapture program tomorrow at the 13th Annual FRA Sub-Advised Funds Forum in Boston.
Boomerang incorporates UAT’s iPerX technology, which has seven U.S. patents and additional patents pending in the U.S. and 38 other nations. For more information about Bloomberg Tradebook’s Boomerang program please contact Jamie Bogen, 212-617-3469, firstname.lastname@example.org or Tom Warren, 303-881-1825, email@example.com.
1 A) The Financial Research Corporation (FRC) found in September 2011 that the current size of the sub-advised market is estimated to be $1.85 trillion (variable annuities and mutual funds).
B) Pensions & Investments (published the following numbers as of 12/31/2010: Total U.S. institutional tax-exempt equity AUM of money managers in our database: $4.6 trillion.
About Bloomberg Tradebook
Bloomberg Tradebook LLC 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.
About UAT Inc.
UAT Inc. is a financial services technology firm specializing in the externally managed and sub-advised industry. Through its patented systems, the Denver-based company helps to lower operating costs and improve performance. Its clients represent a variety of organizations that use external money management firms for their investment portfolios, including public and private defined benefit plans, defined contribution plans, mutual funds, not-for-profit funds, variable insurance products, bank trust groups, endowments and foundations. For more information, please visit www.uatinc.com.
Contact for Bloomberg:
Contact for UAT:
Dana Taormina, JCPR, +1-973-850-7305, firstname.lastname@example.org