The adoption of electronic fixed income trading continues to rise, and electronic trading platforms are playing an increasingly vital role in today’s uncertain market.
A new report from Aite Group, LLC provides an overview of the global and U.S. fixed income markets. Specifically, the report delves into trends in electronic fixed income trading, profiles major electronic fixed income trading platforms, and compares these platforms’ attributes.
Over the last three years, both global and domestic fixed income markets have shown impressive growth, and attendant fixed income e-platforms have evolved alongside them in terms of transacted volume growth and the development of new functionalities. While the credit crunch and mortgage crisis have certainly affected fixed income trading, the US$80 trillion global debt markets – which include the US$30 trillion U.S. debt market – must still be serviced, albeit in a much-changed world. Today’s business challenge will be to weigh cost savings opportunities against the potential shrinking pool of counterparties. With respect to their products, offerings, services and strategies, the various electronic fixed income trading platforms offer different playbooks to meet this challenge, with different implications relating to each platform.
"The electronic adoption of fixed income trading will continue to grow in coming years," says John Jay, senior analyst with Aite Group and author of this report. "What were once enterprise hurdles are now non-issues, and automated regulatory compliance, connectivity and straight-through-processing are now ubiquitous functionalities. In the current environment of risk aversion, it is access to liquidity, along with market-responsive tools, that will ultimately determine an e-platform’s success."
The report profiles and compares seven electronic fixed-income trading platforms: BondDesk, eSpeed, ICAP, Knight BondPoint, MarketAxess, Tradeweb and TMC.
This 42-page Impact Report contains 21 figures and three tables. Clients of Aite Group’s Institutional Securities & Investments service can download the report by going to the Aite Group web site at www.aitegroup.com