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Multi-Dealer Platforms Increasingly Costly, FICC Traders Agree – The Trade

Full Article: The Trade

“Over the last few years, the dominant narrative has been that more transparency is a good thing, hence the focus on getting more execution on venues,” said Tom Jacques, senior research manager at Coalition Greenwich. “This is largely true, but while transparency has increased, so have the fees earned by the intermediaries and the overall costs incurred by liquidity providers, which ultimately negatively impacts the end investor.” 

Credit Suisse, Bank of America, Credit Agricole Fined by EU for Bond-Trading Cartel – WSJ

Full Article: WSJ

The EU’s executive arm said Wednesday that traders at the banks worked together on trading strategies, exchanged sensitive price information and coordinated prices for sovereign bonds denominated in dollars.

“The cartel harmed the financial markets,” said Margrethe Vestager, executive vice president of the European Commission. She said the trading restricted competition when fund managers bought and sold bonds on behalf of investors and retirees. 

Customer Connectivity: What Do Corporate Bond Customers Really Want? – Stifel

Full Article: Stifel

In an effort to refine Stifel’s distribution strategy, we recently solicited feedback from customers about their electronic preferences for delivery of our liquidity pool (pre-trade data) and how they are interacting with the street in an increasingly digital-based financial landscape.

Our outreach included inquiries about customers’ order and execution management systems (OMS and EMS) and connectivity preferences. In all, we gathered more than 500 responses from institutions of all sizes and sophistication levels in Investment Grade, High Yield and Emerging Markets.

Gary Gensler is Confirmed as SEC Chairman by Senate – WSJ

Full Article: Wall Street Journal

Senators voted 53-45 to approve Mr. Gensler’s nomination, making him the most prominent financial regulator that President Biden has hired to date. He received support from three Republicans, reflecting the GOP’s limited appetite for a policy agenda that is expected to include requiring more disclosure from public companies on matters such as the potential impact of climate change on their businesses.

Tapping the Network Effect to Unearth Bond Liquidity – Greenwich

Full Article: Greenwich

While big-dealer dominance used to come from their large balance sheets, which allowed them to take principal risk, their dominance now is based much more on the network of clients they’ve created over time, and their ability to connect opposing interests among them. In other words, they know where the bonds are buried.