By carrying securities on their books at artificially inflated prices, hedge funds can show better performance. They can collect more in management and performance fees — or hide poor performance for certain holdings.

Approximately 90 percent of the trading professionals participating in a 2016 Greenwich Associates study utilize voice communications in electronic trades, primarily for post-trade interaction.

Last week the Economist wrote an “article” about the future of the corporate bond market. The piece was so interesting, that this week the Friday Newsletter is presenting reviews of the Economist article from our exclusive team of market structure experts, the 10,000 Hours Team.

The discussion of whether there will be consolidated tape for fixed income products is no longer a matter of if, but when. The wheels already are in motion for public disclosure of US Treasury trades. They are not moving quickly, but they are moving.  

Tradeweb will extend its all-to-all corporate bond trading service, to be launched in the US later this year, into Europe following an increase in demand for RFQ trading protocols.

For buy-side institutions that are formulating a price-making strategy in corporate bonds, a full examination of these key questions can serve as a guide that helps you optimize the benefits of price-making while avoiding the pitfalls.

The report found that Bloomberg accounted for 33.40% of market share as a result of growth in its data feed and other non-terminal business. At the same time, terminal counts shrank for only the second time in company history.

There’s something a bit creepy about this story, which is not so much about a hedge fund that discovered it would lose money if it was forced to sell a bunch of bonds all at once — though that is true — as it is about a hedge fund that looked into where it could sell bonds and found out that everyone’s whole concept of fair value was completely wrong.

The market seems to broadly agree that innovation is the best way to resolve the problems presented by these pressures and their impact on profitability. As demonstrated by the small number of established utilities or successful fintech start-ups, however, this often is more difficult than it looks.

According to a recent report from Greenwich Associates, institutions are allocating their increasingly scarce resources to fixed income pursuits and technology