Mostly… fixed income and cross product eTrading

August 24, 2007

Euromoney says electronic fixed income revolution is on its way….

Filed under: 2015, etrading — holky @ 7:20 pm

Go get your free trial to Euromoney …  then read up on their view of the coming revolution in fixed income e-trading. Nothing earth shatteringly dramatic in there, but a ‘nice’ summary of the e swaps landscape

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8 Comments »

  1. I have not read the article yet, but can someone, in general terms tell me why “swaps” is thought by some to be the way to e fixed income? Most firms do not even have STP in place for swaps. All swaps dealers on single dealer platforms or those engaged with the “thought” of etrading do not even have ebrokers of swaps. How could this ever mean “swaps” trading will reach any volumes of significance for profitability. As it is a client can call 3 dealers and in most vanilla swaps get a locked or inverted price.

    Im no expert, Im just curious as to the hype or others thoughts as usual.

    Comment by lacidar — August 25, 2007 @ 1:32 am

  2. I think much of the e-swaps hype has been surrounding LiquidityHub…..myself included.

    In saying that, I believe that hype has died down considerably as LH, in it’s intial guise, isn’t that earth shatteringly innovative.

    Regarding pricing, it will be interesting to see just how tight the prices are on LH once they are settled, probably Q1 next year.

    Comment by waratah — August 27, 2007 @ 3:10 pm

  3. there is far more technology to be built in order to get swaps ‘right’ – for one example, over and above whatever the platforms/ecns do or dont offer, i still wonder how many (if any) banks genuinely have a fully three-dimensional real-time credit check for electornic client enquiry? .. something sufficient to really offer swaps out to an institutional clientbase

    sorting out the shortfalls of existing cash bond offerings doesnt really grab headlines.

    Comment by holky — August 27, 2007 @ 6:49 pm

  4. Holky, LH has a “negotiated notional” element to it. Where the bank can come back on a lower notional if they see fit. Clearly this is credit rellated (could be book related but one would hope not given these are the vanilla of the vanilla).

    Now how they do it unless it is, as you say, “a fully three-dimensional real-time credit check” I’ve no idea.

    Comment by waratah — August 28, 2007 @ 11:35 am

  5. […] August 28, 2007 B2B or B2C? Posted by waratah under LiquidityHub , ECNs , Dealers , The Future  Holky has brought attention to a recent Euromoney piece on “The coming revolution in fixed income e-trading”. […]

    Pingback by B2B or B2C? « Fixed Income E-trading — August 28, 2007 @ 1:29 pm

  6. I’m hearing LH it may be postponed due to market conditions….makes sense when swaps liquidity, e or otherwise has seriously dried up. So a longer soft launch period?

    Comment by waratah — August 28, 2007 @ 3:52 pm

  7. What’s going to be launched first- liquidity hub or turquoise?

    Comment by Holky — August 28, 2007 @ 5:25 pm

  8. Slipped to Sept 18 soft launch I hear…….could be a more serious question than you think!

    Comment by waratah — August 31, 2007 @ 9:43 am


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