Overcapacity and consolidation have led to a decrease in electronic trading platforms in the US fixed-income market, according to a report by The Bond Market Association.
The report catalogues and describes systems that allow dealers or institutional investors to buy or sell fixed-income products electronically.
The BMA identifies 49 electronic trading systems based in the United States that support trading in fixed-income securities and derivatives, versus 68 last year and 11 in 1997. In all, there are 21 names listed in the Association's 2000 report that are not in this year's edition.
The report attributes consolidation in the number of US trading systems to overcapacity, contraction in the Internet economy and unsuccessful business models.
In Europe, the BMA recognises 24 systems, up from the five identified in 2000. Some of the additions are new systems; others are the result of the Association's expanded coverage of the European market's.
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