Mostly… fixed income and cross product eTrading

March 26, 2007

NYSE Bonds launches April 23

Filed under: etrading — holky @ 1:32 pm

New York Stock Exchange’s parent, NYSE Group, said Friday that it received Securities and Exchange Commission approval for its NYSE Bonds platform and that the fixed-income trading system will open for business on April 23. NYSE Bonds was cleared to handle corporate and convertible debt, foreign bank and foreign government bonds, U.S. Treasury and agency securities, and municipals and debt-based structured products.

When the system goes live, however, it will offer only corporate debt trading. Plans to add other products hinge on results including the number of users NYSE attracts to the platform, which is powered by NYSE Arca electronic matching technology and will replace the legacy Automated Bond System (ABS).

Broker-dealer members of NYSE and their sponsored participants such as hedge funds will be able to trade bonds like equities; orders will be matched and executed if, when entered into the system, contra-side interest is available at that or a better price. The system is touted as a viable alternative to the request-for-quote (RFQ) method that dominates institutional bond trading.

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4 Comments »

  1. I recall someone posting a while ago that the NYSE Bonds initiative is very much focused at the retail investor.

    Comment by waratah — March 27, 2007 @ 7:49 am

  2. Are you drawing a distinction between straight corporates and convertibles for April 23, or will both be traded?

    Comment by William H Feingold — March 27, 2007 @ 6:27 pm

  3. Looks like just corporates for april.

    You know, i cant help drawing a parallel with SPEX bloomberg tradebook for corps and financials that made a brief appearance in europe a few years ago. Yes there were couple of good, and it must be said entirely natural trades there, but with buyside all generally always heading in the same direction, the thing relied on liquidity providers being there in both sides to actually make anything happen.

    Comment by holky — March 27, 2007 @ 8:01 pm

  4. 30 smaller dealers and correspondent firms are signed up and ready to trade with each other on new NYSE Bonds. Given the flexibility of the orders via ARCA this is different than Bloomberg Tradebooks attempt in Europe. That said, when (or if) NYSE Bonds gets traction, Bloomberg will jump at putting corps on Tradebook immediately.

    Comment by lacidar — March 29, 2007 @ 1:47 am


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