
Has Bond E-Trading in Europe Hit the Ceiling – Greenwich Associates
February 18, 2016 \
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Full Article: Greenwich
Electronic trading in IG corporate bonds in Europe still dwarfs the US. Greenwich Associates data shows that in 2015 20% of client volume in the US was traded on screen compared to Europe’s 46%.
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6 Comments on "Has Bond E-Trading in Europe Hit the Ceiling – Greenwich Associates "
What I am trying to understand is, what is the value of a dealer paying a large fixed fee for RFQ flow that hundreds of firms (some quasi sell side) can see for a fraction of the cost? Paying a fixed fee for discretionary order flow has definite value worth paying for (can debate that value). Pay per trade would make more sense.
Will this move to all to all put a damper on RFQ growth in the US…or maybe this is a case of Sonny in a Bronx Tale, “Now youse can’t leave”.
The lead article speaks volumes about the way ALLQ is dominating in Europe and how differently electronic corporate bond trading is effectively marketed in each region. No one in the US has ever developed a platform that incentivizes a dealer to show inventory and pricing by connecting a client’s inquiry to a dealer’s information. Despite all of the new ideas and platforms out there, a simple targeted ALLQ-like system with spread based trading may do very well in the US.
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