Bloomberg Terminal
The Bloomberg Terminal is a proprietary software platform developed by Bloomberg L.P. that provides financial professionals with real-time access to market data, news, analytics, trading tools, and communication features essential for decision-making in global finance.[1][2] Launched in 1982 following the founding of Bloomberg L.P. by Michael Bloomberg in 1981 with proceeds from his tenure at Salomon Brothers, the terminal initially focused on fixed-income analytics to address opacity in bond trading but rapidly expanded to encompass equities, commodities, currencies, and derivatives across asset classes.[2][3][4] Its core strength lies in integrating vast proprietary and third-party datasets with proprietary functions for screening, charting, backtesting, and instant messaging among over 350,000 users, fostering a networked community that enhances liquidity and information flow in markets.[5][6] Subscription-based at roughly $27,000 annually per user, the terminal's high cost reflects its comprehensive scope and reliability, though it has endured outages and drawn criticism for vendor lock-in due to entrenched workflows and interoperability challenges.[2][7] A notable controversy arose in 2013 when disclosures revealed that Bloomberg reporters had monitored client login and usage patterns via administrative tools, prompting client complaints about privacy invasions and leading to internal reforms and regulatory inquiries.[8][9]History
Founding and Early Development
Michael Bloomberg founded Innovative Market Systems (IMS) in 1981 after departing Salomon Brothers, where he had risen to partner and developed in-house computerized financial systems.[10] His $10 million severance package from the firm's acquisition by Phibro Corporation provided the initial capital to launch the venture, aimed at delivering real-time market data and analytics to financial professionals.[11] IMS focused on creating a terminal that integrated pricing tools for financial instruments, particularly emphasizing fixed-income securities, building on Bloomberg's experience at Salomon in bond trading.[4] The Bloomberg Terminal, initially known as the Market Master terminal, was developed by a small team and released to the market in December 1982.[12] Merrill Lynch became the first customer, installing 20 terminals that year to access the system's capabilities for tracking market information and performing calculations previously done manually or with less efficient tools.[4] The terminal's innovation lay in its ability to provide comprehensive, real-time financial data, news, and analytical functions through a single interface, addressing gaps in existing systems like those from Dow Jones or Reuters.[13] Early adoption grew steadily as the product demonstrated reliability and utility in high-stakes trading environments. By 1986, IMS was renamed Bloomberg LP to leverage the founder's personal brand and expand its scope.[10] The company's emphasis on proprietary data aggregation and user-friendly software positioned it as a disruptor in financial information services, with terminals leased rather than sold to ensure ongoing updates and support.[14] This leasing model, combined with continuous enhancements, laid the foundation for widespread institutional use in the late 1980s and early 1990s.[11]Expansion and Key Milestones
Following its initial development, Bloomberg L.P. expanded beyond its exclusive arrangement with Merrill Lynch, which had restricted sales until the late 1980s. In 1986, the company rebranded from Innovative Market Systems to Bloomberg L.P. and began marketing terminals to sell-side firms, enabling annual growth rates of 25-30%.[10][15] This shift marked a pivotal expansion phase, with international offices opening in London and Tokyo in 1987 to serve global clients, followed by Singapore in 1990, Frankfurt and Hong Kong in 1993.[15] The launch of Bloomberg News in 1990 integrated proprietary journalism into the terminal, differentiating it from competitors and spurring subscriber growth; each subsequent media venture, such as Bloomberg Business Radio in 1992, correlated with surges in terminal installations.[15] By 1990, the 10,000th terminal was installed, reaching 14,000 by the end of 1991 with $140 million in sales.[4][15] Installations grew to 22,000 in 1992 ($290 million sales) and 31,000 in 1993 ($370 million sales), reflecting rapid adoption amid expanding data and analytics capabilities.[15]| Year | Terminals Installed | Key Developments |
|---|---|---|
| 1995 | 45,000 | Introduction of "Open Bloomberg" for PC-based access, broadening hardware compatibility.[15] |
| 1997 | 75,000 | Sales exceeded $1 billion in 1996, driven by enhanced fixed-income tools and global reach.[15] |
| 2011 | 300,000 | Milestone reflecting network effects from features like Instant Bloomberg messaging.[16] |