Boomerangâ Algorithm Optimizes Trade Execution & Commission Savings
Bloomberg Tradebook and financial technology company UAT today announced a software platform and adjustable algorithm called Boomerangâ 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.”
Boomerang incorporates UAT’s iPerX technology, which has seven U.S. patents and additional patents pending in the U.S. and 38 other nations.