Bloomberg's New 'Market-On-Close' Trading Expands to US Treasuries

Bloomberg Expands Market-On-Close Trading to Include US Treasuries

On May 28, 2025, Bloomberg announced a significant enhancement to its trading capabilities with the introduction of US Treasuries (UST) into its Market-On-Close (MOC) trading listing. This development follows the earlier launch of MOC for European Government Bonds, signaling a robust strategy to improve trading workflows across different government securities.

The introduction of this new feature is set to transform how investors operate in the US Treasury market. With the market-on-close order functionality, traders can seamlessly enter or exit positions at the market's closing price without the hassle of manually executing trades right at the closing bell. This is particularly advantageous as it minimizes tracking errors, ensuring that investors achieve a more precise execution aligned with their market strategies.

The momentum for this expansion has been fueled by collaborations with major financial players, including BMO Capital Markets and Schwab Asset Management, who were integral to the tool’s development. These institutions executed the first trade using Bloomberg’s Evaluated Pricing Service (BVAL), which helped cement a reliable closing price for these transactions. Currently, the service is supported by nine dealers, with more liquidity providers expected to join by the end of 2025, which will further increase market participation and efficiency.

Investors leveraging this tool will benefit from various advantages, including the ability to negotiate terms on trades that are not immediately quoted, as well as sending in-comp trades to multiple dealers—at least five—through the workflow. Bloomberg’s advanced analytics and communication features ensure that users can identify the best liquidity provider, streamlining their trading decisions further.

Moreover, the Market-on-Close trading tool integrates with Bloomberg's Portfolio Trading Basket Builder (PTBB), part of the comprehensive Portfolio Trading Solution. This integration allows participants to negotiate electronically while utilizing an end-of-day pricing snapshot, making the process even more efficient.

Christopher Johnson, the Global Head of Trading at Schwab Asset Management, highlighted the significance of this development, stating that it will support locking in benchmark-relative pricing while enhancing team scaling and reducing risk in their index portfolios. This partnership exemplifies the kind of innovations Bloomberg is spearheading to elevate market practices and support client needs effectively.

Joseph Leary, Head of Digital and Liquid Trading at BMO Capital Markets, echoed these sentiments, noting that Market-On-Close trading offers predictability and various advantages that facilitate better risk transfer and optimize end-of-day strategies.

Trevor Mallinson, Bloomberg's Global Head of Rates Product, further emphasizes the importance of this enhancement, pointing out that increased pricing certainty decreases market impact and slippage, which are crucial in volatile market settings. This development marks a critical evolution in government bond trading as it aligns with benchmark pricing and expands liquidity access for traders.

Bloomberg’s Electronic Trading solutions have demonstrated their prowess across more than 175 markets worldwide. With a client base exceeding 9,000 firms, their platform connects market participants to a vast array of liquidity sources, boasting over 1,500 dealers globally. The comprehensive trading lifecycle solutions include price transparency, analytics, automation, and execution features powered by Bloomberg’s extensive multi-asset class data.

For companies looking to place their trades more effectively in today's dynamic environment, Bloomberg's latest offerings are poised to be a game-changer, bringing enhanced clarity and efficiency to the forefront of financial trading. By continually investing in electronic solutions like these, Bloomberg is underscoring its commitment to innovation and leadership in the marketplace. As they continue to roll out these advanced tools, stakeholders can anticipate a stronger framework for trading in US Treasuries and beyond.