Career Enhancement Program
Industry Research 2
Data Company:
Bloomberg & Reuters
By group5:
Benny, Joe, Stanly
There are two main market players in the data industry. They are Bloomberg and Reuters
Bloomberg:
Background:
Bloomberg L.P. is an information services, news and media company serving customers around the
world. Headquartered in New York, we employ more than 8000 people in 108 offices worldwide.
Bloomberg has forged a unique position within the financial services industry with the Bloomberg
Professional service, which provides an unparalleled combination of data, analytics, electronic
trading and straight-through processing tools in a single platform. By providing instantaneous
access to real-time historical financial data — and the ability to act on it — Bloomberg transformed
the securities business and leveled the playing field between buyers and sellers. Our clients include
the world's central banks, investment institutions, commercial banks, government offices and
agencies, corporations and news organizations.
In addition to the Bloomberg Professional service, Bloomberg has grown to include global news,
television, radio, Internet, and magazine and book publishing operations. Bloomberg News was
founded in 1990 as a financial news wire service and has grown to include 1500 reporters and
editors in 87 bureaus worldwide. Bloomberg Television , a 24-hour business and financial news
network, is produced and distributed globally in seven different languages. Bloomberg Radio is
syndicated through more than 700 affiliates worldwide and gives listeners up-to-the minute business,
national and international news. Bloomberg's 24-hour flagship station is Bloomberg WBBR 1130
in New York.
The company publishes three magazines in the U.S. for consumers and professionals. Bloomberg
Wealth Manager is published for money managers and advisers; Bloomberg Markets™ is a
business magazine for investment professionals and complements the Bloomberg Professional
service. On Investing is a personal investment magazine produced exclusively for Charles
Schwab's top-tier clients. Bloomberg also publishes, in conjunction with local partners, Bloomberg
Money™ in the U.K. and Bloomberg Investment in Italy.
Bloomberg's Web site, Bloomberg.com , is among the top five most visited sites in the U.S. for
financial news and information.
Core Business:
1.
Bloomberg Professional service
The Bloomberg Professional service is the interactive, financial information network that is
Bloomberg's core business. Available 24 hours a day to more than 260,000 professionals in over
100 countries, the service seamlessly integrates data, news, analytics, multimedia reports and
e-mail into a single platform. It is used by market professionals around the world to make informed
decisions and to complete transactions — in any currency and in a way that is meaningful, accurate,
and consistent.
Bloomberg News is a central element of the Bloomberg Professional service. With a constantly
updated database, more than 1,200 journalists in Bloomberg News bureaus around the world report
and analyze the very latest business and financial news. By leveraging that data and its analysis,
Bloomberg News can provide clients with comprehensive coverage of markets, economies,
companies, politics, sports, entertainment and more. Bloomberg News generates more than 4,000
news stories daily and is also the main content provider for the entire family of Bloomberg media.
Due to its success, over 350 leading newspapers worldwide now depend on Bloomberg News as a
key source for business news stories.
An intrinsic feature of the Bloomberg Professional service is its analytic ability. Bloomberg
analytics help clients see the markets more clearly by means of real-time tools. Clients can monitor
risk and exposure, utilize pricing models, and evaluate long- and short-term performance. For
pre-trade analytics, the quality and depth of Bloomberg data make the system an exceptionally
powerful tool, giving clients the confidence they need in their analysis and investment conclusions.
Once you've signed up as a member of the Bloomberg Professional service, you have the private
and secure Bloomberg network at your disposal to manage your positions, analyze your exposure
and trade electronically. Bloomberg is the only serious choice for the financial professional.
To support such an important network of information, Bloomberg employs a highly trained,
multilingual team of more than 1,300 people who find solutions to any problems clients may have.
Clients need only contact the Bloomberg help desk to receive a response within minutes — 24
hours a day, 7 days a week, and 365 days a year. And there are both technical operators who provide
instant assistance over the phone and rapid-response field engineers who can be on-site in a matter
of hours. Bloomberg clients know that if they have a problem, the company is always on call and
ready to help.
The Bloomberg Professional service has become an integral way of understanding global financial
markets. By the offer of all of this assistance and functionality to clients in one single package, for
one single price, financial professionals recognize the Bloomberg Professional service as the
definite tool for achieving their goals.
2. BLOOMBERG Portfolio Order Management System
BLOOMBERG Portfolio Order Management System (POMS) is a front office solution for asset
managers. POMS seamlessly integrates Bloomberg's leading market data and global communication
network with portfolio management applications which include: risk analysis, order management,
cash and position management, portfolio modeling and benchmarking, compliance, and
straight-through processing.
POMS seamlessly connects fund managers to dealers in real-time at multiple locations. Decision
Support analytics and modeling tools enable fully informed investment decisions to be made by the
fund manager. Orders are electronically transferred to dealers who manage the order flow through a
real-time trade blotter that integrates market data with order details. This powerful tool ensures that
dealers have all necessary information consolidated into easy to use applications.
BLOOMBERG Trade Order Management System
BLOOMBERG Trade Order Management System (TOMS) is a global risk management,
position-keeping platform incorporating top quality data with electronic trading and risk
management applications. TOMS connects sales and trading desks at multiple locations and enables
personnel to make educated trading decisions quickly and accurately. Traders can view their
positions, risk, and 'profit & loss' in real time, whilst managers may view these in real time on a
firm wide, departmental and trader/sales level. TOMS provides personnel with effective tools to
digest market conditions and efficiency process customer enquiries and orders.
Bloomberg's comprehensive global securities database eliminates the need, time and expense of
maintaining your own internal database. Up to date information on the securities held in your
trading system will ensure an accurate representation of your overall trading position. In addition to
the benefits to salesmen, traders and risk managers, the integrity of data and range of applications
are invaluable in middle and back office areas such as trade processing and reporting.
3 BLOOMBERG
Data License
An Arsenal of Premium Data
BLOOMBERG Data License addresses the demand for performance and efficiency by providing
access to the most comprehensive, timely, and accurate financial database in the world. By
harnessing the power of Bloomberg's data to fuel critical applications or custom databases, users
will benefit from more accurate valuations, increased trade processing, and a decrease in settlement
errors. The Data License provides firms with the unique ability to query Bloomberg's unparalleled
global database with custom data requests or, alternatively, subscribe to a pre-defined bulk asset
database.
The Trusted Source for Indicative Detail
No other data provider has the reliance of the portfolio manager or trader, which Bloomberg does
via the BLOOMBERG PROFESSIONAL service. Over 260,000 users not only base their trading
decisions on our data for 4 million securities, but also use it to price instruments, confirm the terms
and conditions of securities process/execute trades, and manage the characteristics and parameters
of investment portfolios. By relying on Bloomberg data to analyze their investments, these users
provide the best means of quality assurance available.
Data Driven
Clients benefit from the data collection efforts of over 1,300 data specialists and 170 specialists
dedicated to quality assurance, located in Bloomberg offices around the world. Bloomberg's data
department is unrivaled in its collection, verification, and data maintenance efforts and serves as the
backbone of the most respected securities database in the world. As part of Bloomberg's aggressive
quality control efforts, response time for corrections and confirmation is as close to real time as
possible.
Reuters:
Background:
Reuters is a global information company providing indispensable information tailored for
professionals in the financial services, media and corporate markets.
It is best known as the world largest international multimedia news agency, more than 90% of its revenue
derives from its financial services business. Nearly 500,000 financial market professionals working in the
equities, fixed income, foreign exchange, money, commodities and energy markets around the world use
Reuter’s products. They rely on Reuters services to provide them with the information and tools they
need to help them be more productive.
It supplies news, text, graphics, video and pictures to media organizations and websites around the world.
It also provides news and research services to businesses outside financial services.
Reuters divided its business into four customer segments. Three serve financial markets:
Services for Asset Managers
Investment Banking
Treasury Services
The fourth, Corporate & Media, is building on its established media business and aims to use Reuter’s
assets in a broader corporate context as well.
1. Services for Asset Managers
Revenue by Segment at 31 March 2003
Services for Asset Managers
24%
The asset management market is a large and diverse sector in which Reuters has a substantial presence:
the top 50 firms around the world are our customers.
It provides tools and information to help asset managers make trading and investment decisions and gain
access to liquidity. It helps them to differentiate their services from those of their competitors and to
communicate effectively with their customers and with each other. Reuters enables them to streamline
their businesses and transact more easily...
The key products
Institutional equities
It provides products to help traders execute investment strategies at the best price. Reuters 3000 Extra
provides a rich source of cross-asset information and powerful analytics to support trading decisions,
whilst Institutional Order Entry provides order-routing capability.
Portfolio management
It focuses on the needs of professional institutional fund managers in carrying out their jobs. It provides
tools, analytics, data and products that fit the operations of this customer base.
Private client services
It provides services that help financial organizations and their advisers offer enhanced services to their
customers, for example information and services to create customer web-sites. Reuters Portfolio
Management System helps advisers manage a range of portfolios and Reuters Plus provides market data
and information to thousands of advisers in the US.
Back office
Reuters provides data and information to help institutions automate and integrate their internal business
processes.
Reuters Data scope delivers and manages market data for easy integration across the organization.
The market
The global asset management industry represents a significant opportunity for Reuters. Its participants
spent $12.5 billion in 2001 on decision support, tools and infrastructure.
Demographic shifts and deregulation, most notably in Europe, are promoting strong growth in demand for
asset management services worldwide, particularly for private client services. However, asset managers
are operating in a fragmented and highly competitive market and are being driven to adapt quickly to
maintain profit margins, retain their customers and build assets under management. The recent poor
market performance is driving an urgent need within the sector to cut costs and gain efficiencies.
2. Investment Banking
Revenue by Segment at 31 March 2003
Investment Banking 27%
Reuters is well established in the investment banking sector. It provides information, analytical,
transaction and community services for a diverse range of organizations and end-users.
Key products
Reuters 3000Xtra and Reuters Bridge Station
Reuters 3000 Extra and Reuters Bridge Station are our premium cross-market products. They provide
market data, news, value-added content and analytics for sales and trading professionals.
Reuters Knowledge
Due for launch in mid-2003, Reuters Knowledge is a new information service for research and investment
banking professionals. It combines everything they need to do their job into one product to enable them to
work more productively while eliminating costs.
Reuters Research & Advisory
Reuters Research & Advisory is a product designed specifically for the needs of research analysts and
corporate finance and M&A professionals. It combines delayed market data, real-time news and company
fundamental content.
Back office
Reuters provides data and information to help institutions automate and integrate their internal business
processes.
Reuters Data scope delivers and manages market data for easy integration across the organization.
Research groups
Its segment also encompasses a number of research groups:
Our market
The investment banking sector has experienced a challenging trading environment. Its customers are
being forced to respond to increasing competition, regulatory pressures and decreasing barriers to entry.
In the face of such trends, they can no longer pursue traditional means to generate growth. They must
generate efficiency in their operations, differentiate their services by exploiting their intellectual capital,
and seek better ways to monetize their assets. This creates a need to invest in solutions that drive
efficiency and create differentiation.
3. Treasury Services
Revenue by Segment at 31 March 2003
Treasury Services 38%
Reuters has a long history of helping customers operate more effectively in the financial markets and has
built a powerful global franchise. Treasury Services is Reuter’s largest customer segment and continues
to perform strongly in a changing market.
It provides news, prices and transaction services. It also offers solutions that enable its customers to
service their customers efficiently and software applications that enable financial institutions to
understand and manage their risks, cash flow and order flow.
Key products
Information:
Reuters 3000 Extra is a cross-market product and is our premium desktop offering for the treasury
market. It enables treasury users to monitor the market with extensive news coverage, including
surveys and forecasts, and a broad coverage of market data including prices from more than 2,000
foreign exchange and money market contributors. The product also provides sophisticated analysis
tools, charting and the ability for users to customize their own work style.
Trading:
Reuters Dealing 3000 Spot and Forward Matching products provide an electronic automatic
matching service which enables users to trade spot and forward foreign exchange. Reuters Dealing
3000 Direct is a conversational dealing service, which has become the standard for electronic
trading and communication in the foreign exchange and money markets. It is used by a community
of more than 18,000 members. Reuters Dealing Link, launched in 2002, is designed for users who
require basic trading functionality yet depend on reliable access to the community. It is a
cost-effective way for customers to provide a trading capability to more dealers and sales people
than ever before.
4. Coporates & Media
Revenue by Segment at 31 March 2003
Corporate & Media 11%
Corporate and Media comprises two businesses.
Media is the traditional heart of the company. It has been serving
the media industry for more than 150 years. Media represents
Reuter’s news business and provides a broad array of products
including text/print services, pictures, TV/video, books and online
services.
Corporate serves customers outside financial services and the
media, providing research, advisory and business intelligence
services.
Key products
Media
It provides two main text services. Reuters News Wires deliver
up-to-the-minute news and analysis. The Reuters On-line Reports
service posts automatically to customers websites breaking news
stories with photos, video and graphics.
Reuters Book Publishing was established in 1999 to draw on our
expertise in news, pictures and data. The Reuters book imprint
comprises more than 30 titles including the best-selling "September
11: a testimony".
Reuters.com is targeted at investors, business professionals and high
net worth individuals. It combines comprehensive coverage of the
world financial markets with major breaking news to provide online
readers with a single destination for staying reliably informed.
Corporate
Fictive, its joint venture with Dow Jones operates one of the world
richest and most diverse news and information retrieval service,
providing access to over 8,000 sources of information.