Electronic bond trading stalled in volatile markets

Bid/offer spreads on bond platforms spiked in March and the buy side struggled to trade

Electronic-trading-breakdown-left-buy-side-floundering

Corporate bond trading volumes soared in March, as panic over the impact of coronavirus sparked a flurry of investor activity. But the proportion of bonds traded on two main electronic platforms shrank. Buy-side traders say banks withdrew from the venues during the volatility, making price discovery an even harder task than usual.

“Electronic trading saw a breakdown in functionality during the height of the volatility spike,” says Jason Fromer, head of US trading for fixed income, currencies

Only users who have a paid subscription or are part of a corporate subscription are able to print or copy content.

To access these options, along with all other subscription benefits, please contact [email protected] or view our subscription options here: http://subscriptions.risk.net/subscribe

You are currently unable to copy this content. Please contact [email protected] to find out more.

To continue reading...

You need to sign in to use this feature. If you don’t have a Risk.net account, please register for a trial.

Sign in
You are currently on corporate access.

To use this feature you will need an individual account. If you have one already please sign in.

Sign in.

Alternatively you can request an individual account here: