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The New King of Electronic Trading is…-Greenwich Blog

LawlorDriven primarily by new rules requiring index CDS trades to be executed on a swap execution facility, the dealer-to-client market for CDX.IG trades is now the most electronically traded in the US, followed closely by FX that for the last several years held the crown. Full Article
Comments
  • Merlin
    MerlinSeptember 11, 2015"Thought provoking and some excellent comments by Charlie and Hollywood (you guys/gals been practicing?! :) ) Would be interesting to see this as a time line as implied by Hollywood and notional as suggested by Charlie. Think would tell an interesting story. One thing is for sure, it took a LONG time for the two to the right to get to where they are after over 15 years of e-platorms going back to 1999 and Trading Edge, Limit Trader and others. Surprised UST is as low a…"
  • Hollywood
    HollywoodSeptember 11, 2015"McPartland states: “Driven primarily by new rules requiring index CDS trades to be executed on a swap execution facility, the dealer-to-client market for CDX.IG trades is now the most electronically traded in the US” – The implication is that regulation created the growth of a move towards electronic trading. However, prior to SEFs going live CDS Index was already trading 75% electronic (without regulatory mandates). This was an organic evolutionary process for a stan…"
  • CharlieSeptember 11, 2015"Fascinating chart from Kevin McPartland, as always! I can't help wondering what the chart would look like if Equities were displayed on a notional basis instead of commission dollars. If we were to take out the 'regulatory effect' i.e. the mandating of SEFs it would seem that little has changed over 10+ years, no ground swell adoption, no catchy innovation. Outside FX and to a great extent equities / US treasuries electronic trading is struggling to make an impact. If…"

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Charlie
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Fascinating chart from Kevin McPartland, as always! I can’t help wondering what the chart would look like if Equities were displayed on a notional basis instead of commission dollars. If we were to take out the ‘regulatory effect’ i.e. the mandating of SEFs it would seem that little has changed over 10+ years, no ground swell adoption, no catchy innovation. Outside FX and to a great extent equities / US treasuries electronic trading is struggling to make an impact. If we think about other spaces such as social media, sharing apps (Uber, Spotify etc) and online auctions / shopping (eBay)… Read more »
Hollywood
Guest
McPartland states: “Driven primarily by new rules requiring index CDS trades to be executed on a swap execution facility, the dealer-to-client market for CDX.IG trades is now the most electronically traded in the US” – The implication is that regulation created the growth of a move towards electronic trading. However, prior to SEFs going live CDS Index was already trading 75% electronic (without regulatory mandates). This was an organic evolutionary process for a standardized product. MarketAxess, Creditex and others tried various solutions for trading CDS prior to 2010. Most of the focus was RFQ. Bloomberg launched single dealer pages (where… Read more »
Merlin
Guest
Thought provoking and some excellent comments by Charlie and Hollywood (you guys/gals been practicing?! 🙂 ) Would be interesting to see this as a time line as implied by Hollywood and notional as suggested by Charlie. Think would tell an interesting story. One thing is for sure, it took a LONG time for the two to the right to get to where they are after over 15 years of e-platorms going back to 1999 and Trading Edge, Limit Trader and others. Surprised UST is as low as it is as well. Seems to have significant implications to continued growth in… Read more »
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