Saturday, April 18, 2015
If You Think These Two News Items are Unrelated....You Probably Haven't Worked in The Financial markets
The bigger fear on European trading desks was that regulators may determine that Bloomberg’s dominance is actually a systemic risk, in need of some regulatory fix, on top of other recent technology additions.
“We recognize that Bloomberg is a monopoly, and we probably lean on them too hard, but it’s a hard nut to crack,” the head of a credit trading desk at a large bank said on Friday, speaking on the condition of anonymity.....
One sales trader, based in Geneva, said his company had a few dozen Bloomberg terminals and used them mainly for buying and sellingexchange-traded funds and credit and for research. None of the firm’s terminals were able to connect for about 2 hours 20 minutes but worked later in the day, he said.
When asked what problems the failure created, the trader said: “Problems? Simple: No prices. Nothing. So you can’t do anything at all.”
He said that simply switching to a Thomson Reuters terminal was not an option for some. “People are used to going through ’Berg and so it’s confusing for a lot of us who never use Reuters,” he said.
It was hard to immediately determine the failure’s effect on specific financial markets. Some traders said that the failure encouraged the negative sentiment that pushed stock prices around the world lower.