23 October 2014

Global fixed income e-trading sees tepid growth

20 February 2014  |  3316 views  |  0 stock quote

Electronic trading systems only managed to slightly increase their share of global fixed-income trading volume in 2013, accounting for a quarter of total volume executed, according to a report from Greenwich Associates.

The report, based on research among 4000 institutional investors globally, points to a continuation of a trend of low growth in fixed income e-trading.

Nearly half of institutional investors execute at least some portion of their fixed-income trading volume through electronic channels but there are big differences across products and regions.

The e-trading of government bonds experienced growth in 2013 with the US leading the charge. Globally, 55% of government bond investors now trade 35% of total notional volume through electronic systems and Greenwich expects strong growth throughout 2014 as interest rates continue to rise.

Meanwhile, despite the arrival of new entrants into the marketplace, top e-trading platform players continue to dominate. MarketAxess continues to lead corporate bond e-trading in the US, with Tradeweb ahead in US treasury trading and Bloomberg dominating across the board in Europe and Asia.

James Borger, consultant, Greenwich Associates, says: "Institutional e-trading of investment-grade corporate bonds showed limited growth in 2013, with some regions posting declines. This stagnation is expected to continue in 2014."

Comments: (0)

Comment on this story (membership required)
Log in to receive notifications when someone posts a comment

Finextra news in your inbox

For Finextra's free daily newsletter, breaking news flashes and weekly jobs board, sign up now.

Related blogs

Create a blog about this story (membership required)

Related stories

13 September, 2013
03 December, 2012
21 June, 2011
29 October, 2009

Featured job

Competitive (including base, OTE, benefits)
London, UK

Find your next job