Liquidnet for Fixed Income

Another one from John Greenan

While talking to a few senior folks in the buy-side about Fixed Income dealing they raised an interesting point. Why is there no such thing as Liquidnet for the corporate bond market?

 

Human sales/trading in an increasingly electronic world

EFN tells us that TABB reckon e-trading use will grow rapidly in European fund managers and investment banks over the next two years – causing the number of sales traders to drop by 9% a year for the next two years, with human traders executing 50% of flow in 2010 (down from 82% in 2005).

The point that new opportunities for the sellside trader are arising thanks to increasing fragmentation – in providing clarity to the buyside on where to execute (“navigating the markets”) – appears underlined by Traders Magazine suggesting that buyside traders do not have a coherent and considered strategy regarding the use of dark pools (for example 18% of the buyside traders unsure what they think their potential usage would be of a dark pool that was able to send out indications based on order flow that resides in that pool).

Isnt the uncertainty just because the landscape is not particularly well charted because it is still changing (and perhaps dramatically so) – eg more execution venue launches later this year. So while sellside need to help buyside clients understand whats out there, surely once the dust settles and the landscape is charted, more buyside will want to execute based on the proprietary rules that they have, in their systems/processes, with regard to when where and why.

French Govvies on MTS

I see French govvy traders’ electronic market making obligations can now be fulfilled away from MTS – here – joining Holland and Belgium in doing this, we must be approaching the tipping point for the rest of the Eurozone Debt Management Offices to similarly open up obligations in terms of venue?? … and this is all happeing at the time the covered bonds guys are seeking their own platform?

Previous post with ICAPs article about the Eurozone restrictions is here

Tradeweb RFS

I see Tradeweb is in the news – with 4 new dealers (Citi, Deutsche, Goldmans, UBS) on Euro IRS, and also introducing a Request for Stream (RFS) trading model for Euro and Sterling IRS.