Exploring Automated Trading Performance in Sovereign and Credit Markets

Trade automation is widely recognized for its benefits, which include reducing trader’s workload, speeding up time to market, and streamlining routing, dealer selection, and execution. However, its impact on trade performance is often underexplored.

In March 2024, Bloomberg published research showing that Bloomberg Rule Builder (RBLD) clients saw better trade performance in listed equity markets. RBLD is a systematic tool that automates orders using customized order validation, dealer selection, and execution rules. In summary, the research found that RBLD clients outperformed manual traders by up to 38% in US markets and 68% in European markets, which is largely attributed to RBLD’s systematic trading approach.

In this report, we apply a similar study to the Fixed Income markets.