Sale of government debt postponed due to alleged problems with the Bloomberg framework
UK Government Bond Auction Delayed Due to Bloomberg System Outage
A UK government debt auction was delayed on Wednesday after a system outage on Bloomberg prevented traders from participating in real-time bidding. The Debt Management Office (DMO) confirmed an extension for the bidding window of the 4 per cent Treasury Gilt 2031 auction due to ongoing issues with the market-wide Bloomberg system.
In a statement, the DMO said, "Due to the ongoing market-wide Bloomberg system issues, the bidding window for this morning's auction of 4 per cent Treasury Gilt 2031 is being extended."
Bloomberg announced that their systems were experiencing a global terminal issue, and their engineering team was actively working to address it. A message on the Bloomberg helpdesk read, "'We're currently experiencing a global terminal issue, and our engineering team is actively working to identify and resolve the problem. I sincerely apologize for the inconvenience, and we truly appreciate your patience and understanding in the meantime.'"
Later, Bloomberg confirmed that their systems were resuming normal operations, and Terminal functionality had been restored following the disruption. The DMO subsequently confirmed that the auction of 4 per cent treasury gilts was successfully concluded after the delay, with the system understood to be back online approximately 90 minutes after the outage. The terminal's instant messaging function continued to work throughout the incident.
The issue raises questions about the UK Treasury's dependence on Bloomberg terminals, which are used by thousands of traders in London's financial district, known as the Square Mile. The platform is described by the company as "the most powerful, flexible tool for financial professionals who need real-time data, news, and analytics." Both the Treasury and the Bank of England maintain Bloomberg terminals, underscoring the system's integral role in their operations. In 2015, the system was last hit by a major outage.
In the face of the disruption, the DMO and market participants had to adapt by extending auction bidding windows, revealing the limited alternative systems available for immediate backup in the event of such outages. As a result, Bloomberg terminals are indispensable to the UK government’s debt issuance process, making the Treasury vulnerable to any disruptions in the system.
The issue with Bloomberg's system outage had an impact on various aspects of the business and finance industry, as it prevented traders from participating in real-time bidding during the UK government debt auction. The Treasury's operations, which include the debt issuance process, are heavily reliant on Bloomberg terminals, making the UK government potentially vulnerable to any disruptions in the system.
