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Alex Outman

Electronic Bond Trading Platforms Seek to Attract Larger Orders – Bloomberg

Author: \ February 25, 2016 \ 8 Comments
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  • CelticBond
    CelticBondMay 5, 2016"In Europe the Govt eTrading orders are significantly down for the last 5+ years. All in Euroland claim that their volumes with the smaller orders are picking up this gap which I doubt. Also many are saying volumes n their IRS platforms which a widers product group covered is picking up the slack?…"
  • Merlin
    MerlinFebruary 26, 2016"The answer is not in the platofrms. The answer lies with institutional investors. Are they willing to move their business to electronic platforms and what are the factors that influence this decision? That is, what problem is being solved. Are they able to get better execution levels on a more frequent basis on the orders they place vs. the information leakage that may be divulged on those orders that do not get executed. We can assume that the information leakage on…"
  • Goose
    GooseFebruary 26, 2016"I echo Jester’s thoughts here. Have operators studied the markets they are trying to imitate? Even in the most liquid markets with standardized price discovery round lots don’t trade electronically. Dark pool average trade size is a couple of hundred shares. It sounds like the thought process is customers + electronic connectivity +lifting protocols from other markets that haven’t there worked for round lots = ROUND LOTS HERE! Maybe this time it’s different…..anyone k…"
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    Byron C-FFebruary 26, 2016"" Maybe, just maybe trading notional sizes >=$5MM in markets that have very little activity require skill, judgement and experience, something that a push button solution may not be able to solve……" totally agree, Jester. That is why our platform isn't push-button, although you do get to push some buttons if you like. We also start at 2 M in EUR, USD and GBP - the size credit trading businesses here deemed to be the start of block. As for no clients quoted in the a…"
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Has Bond E-Trading in Europe Hit the Ceiling – Greenwich Associates  

Author: \ February 18, 2016 \ 6 Comments
Comments
  • Iceman
    IcemanFebruary 20, 2016"A lot of great points raised by all and hopefully the below will add another slant. In the US there is TRACE (surprise right) and if you are a market maker you can make some pretty good assumptions on your market share in volume and trades 'if' a client wants to benchmark you (outside your primary biz.....) or you want to go and push the client to show you more flow. Now lets look at Europe which has........ electronic trading across multiple platforms with no 1 spot…"
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    ViperFebruary 20, 2016"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…"
  • Goose
    GooseFebruary 19, 2016"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”.…"
  • Merlin
    MerlinFebruary 19, 2016"Jester brings out an interesting point and I will defer to him on the accuracy of his statements. Personally I have never got this impression. It always seemed to me that actually more european accounts would pounce on an error than give the dealer a heads up of their mistake (and Jester does talk about abuse). I think the development of e-trading may have to do more with the make up of market participants and how it has evolved over time. There always was, and contin…"
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