Group Co.
Trouble at Tradebook?
Traders Magazine Online News, March 29, 2017
Could the handwriting be on the wall for Bloomberg Tradebook?
There is speculation in the market that the institutional brokerage and agency execution arm of media conglomerate Bloomberg is either throttling back or closing down. The talk comes on the heels of recent departures of Glenn Lesko, CEO and president of Tradebook, and Ray Tierney, global head of trading solutions. Both were long-time Tradebook employees and senior capos. Tierney was also CEO and President of Tradebook from 2010 to 2015 – only to be replaced by Lesko.
Ray Tierney
While one source close to Bloomberg indicated that a replacement for Tierney will be named soon, traders were of a mind that the departures of Lesko and Tierney could be seen as marking the final stages of Tradebook’s existence.
One source, who spoke on condition of anonymity, suggested that rationale for the downsizing and possible closure of Tradebook comes down to bottom-line considerations -- the rewards associated with operating in the current regulatory and commission environment aren't sufficient for Bloomberg.
“We heard that Tierney was let go – and in the wake of Lesko leaving it smells like something is definitely happening over there,” another source told Traders.
Another trader said that Tradebook’s market allure had faded and that it was not a major player any more in the execution business. A third trader in Dallas told Traders Magazine that without Lesko and Tierney at Tradebook, “There is simply nothing and no one left at the firm.”
Tradebook employs approximately 30 to 35 people, sources said. Bloomberg Tradebook doesn't publish its staffing levels.
Earlier this month, Traders Magazine sat down with Lesko who introduced the roll-out of OPTX, a new approach to delivering best execution that harnesses the power of Bloomberg’s market data and analytics, its agency execution model and global connectivity.
Glenn Lesko
According to Lesko, OPTX was to provide clients with a single platform that utilizes quantitative data models and analytic-driven selection to route orders to a suite of destinations. Applied to Bloomberg Tradebook’s equities and options offerings, OPTX empowers traders to optimize execution and drive down implicit costs.
Speculation about a possible shutdown follows several other significant happenings at the broker.
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