Why do I say this? Well, below are the positives and negatives.

Positive:
Project Fusion: having direct dealer ownership sures up liquidity in the face of the likes of LiquidityHub
– The no. 1 FI e-trading ECN
– Thomson-Reuters merger allows for greater resource access (esp. via Reuters salesforce in Asia and other EM’s)

Negative:
– lower volumes in Govt bonds, their bread and butter, due to the credit crunch
– these volumes are under further threat from Hedge Fund interest in joining MTS
– in over a year TW’s credit offering has failed to impact MarketAxess or Bloomberg
– despite the no. 1 status, TW’s functionality and architechture has failed to advance to any great degree and it is difficult to see this happening in 2008 (see next point). This ranges from the simple (market depth) to the more complex (API to accomodate algo trading)
– Thomson-Reuters merger means TW could get caught up in big firm bureacracy

Overall positive but not without a few things to watch out for.

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