The trading terminal war between Bloomberg and Thomson Reuters, once a tightly contested battle, may be turning into a one-sided affair. Some traders have put their foot down, essentially refusing to make the switch to the less expensive Thomson Reuters terminals despite growing cost pressures at big banks and trading houses.
Market data products generated $7.5 billion in revenue for Thomson Reuters last year, down from $7.9 billion in 2008, Douglas Taylor, of Burton-Taylor International Consulting, told the Wall Street Journal. The global market-data industry grew 11% during that period.
Bloomberg appears to be picking up the pieces, increasing its revenues by 4.5% to 7.9 billion in 2012, a company spokesperson told eFinancialCareers. Bloomberg is hiring, she confirmed, while Thomson Reuters is cutting staff.
The main reason: Bloomberg terminals are addictive, and traders are having trouble weaning themselves off. It has less to do with market research than you’d think.
Bloomberg’s instant messenger service is the main communication channel used by traders, and one Thomas Reuters can’t replicate. From work talk to fantasy football chatter, Instant Bloomberg (IB) is how traders keep up with their “work boyfriend or girlfriend,” said one trader. Another told us that some clients simply won’t work with traders who aren’t operating on Bloomberg. Communication is just too painful.
A third trader said that his boutique firm moved to Thomson Reuters two years ago, but gave employees the option of sticking with Bloomberg if they paid the difference themselves. More than half of the traders at his firm are now paying more than $500 a month out of pocket to remain with Bloomberg. That’s an addiction.
Jeffries Group Chief Executive Richard Handler has suffered “real and irreparable harm.” His panoramic view of the Manhattan skyline is being obstructed by a construction site about a block away from his $23.7 million penthouse. He’s suing the city.
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How would it feel if your subordinate made more money than you, year after year? Ask Bank of America CEO Brian Moynihan, who has now been out-earned by co-Chief Operating Officer Thomas Montag for three straight years. Moynihan is catching up, though.
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Paul Howard, the corporate vice-chairman of Oriel Securities, didn’t last very long in his new role, leaving the mid-cap broker after only a month. He was hired by former chief executive David Knox, who resigned the week after Howard started his new gig.
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