April 2008

Article on eFinancial where Celent are stating that Brokers will cut tech spend by 7%.

If you take into account that short-term tech spend will be up on risk management and various regulatory issues, where does this leave e-Trading and specifically FI e-Trading? At SIFMA the banks said the spend will be level…….hmmmm, it wasn’t convincing then and is less so now.


TradeWeb launching a Cash Deposit platform.

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).

Brief article on Bank Consortiums on eFinancial with a focus on LiquidityHub. Quoting a Bank source: “The 16-bank consortium became quite unwieldy as there were a lot of interested parties with equal shares. The nine dealers that joined TradeWeb are the bulk of the market and they realized there was a better way of doing things, rather than fighting these battles internally through LiquidityHub.”

I just spotted this on Reuters. Citi have taken an equity stake in TradeWeb and will have a seat on the Board.

Citi and BarCap were the two most notable dealers not involved in Fusion, in my view.