Brief piece by Larry Tabb, in Advance Trading, on the future of FI e-trading and that the time is right to move towards an agency/echange type model in Fixed Income.
I can’t say this immediately grabs me as a concept, and it certainly isn’t a new concept. I agree that by the time the markets have settled (2009?) there should be fertile ground for change, but as Tabb points out (and as is often the problem with FI e-Trading) who will drive it? Two players he fails to mention are the existing providers of FI e-Trading venues (e.g. TradeWeb, MTS, BrokerTec, eSpeed) and Exchanges (Equities and Futures).
May 22, 2008 at 9:15 pm
Well certainly multi-dealer have stalled over the last 18 months. If FI has to improve well look to the way equities have gone as OTC markets need a fresh approach. Exchange model actually works & volumes can be managed in any size. How many times does one hear FM or HFs managers claim that large sizecan only be done on the phone or a particular trade structure? These are carried out all the time on exchanges