Editor’s letter
The rehabilitation in all things technological – as far as the bond markets are concerned – and the improvement in corporate bond liquidity are providing a welcome boost to the area of electronic bond trading. Electronic trading from corporate bonds first emerged in the mid-1990s and rapidly failed to live up to many of the industry’s promises. One key problem was that providers failed to take account of the nuances of the corporate bond market – illiquidity and fragmentation.
As a result many platforms assumed that the market would be willing and able to jump from a relationship-led, over-the-counter market to one of exchange trading within short period of time. Combined with collapses in technology spending by financial institutions and the liquidity crisis that rocked the US and European bond markets in 2002, many trading platforms retreated back to the government bond markets or threw in the towel altogether.
However after a year of improving liquidity, trading platforms are returning, to a large extent chastened and less complacent. At the same time a number of the largest banks in credit have been pushing their own electronic trading platforms in an attempt to reap the benefits of greater efficiency and speed that electronic trading offers.
Perhaps after the false dawn of the 1990s, 2004 will finally bring the reality of electronic trading to corporate bonds.
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 info@risk.net or view our subscription options here: http://subscriptions.risk.net/subscribe
You are currently unable to print this content. Please contact info@risk.net to find out more.
You are currently unable to copy this content. Please contact info@risk.net to find out more.
Copyright Infopro Digital Limited. All rights reserved.
You may share this content using our article tools. Printing this content is for the sole use of the Authorised User (named subscriber), as outlined in our terms and conditions - https://www.infopro-insight.com/terms-conditions/insight-subscriptions/
If you would like to purchase additional rights please email info@risk.net
Copyright Infopro Digital Limited. All rights reserved.
You may share this content using our article tools. Copying this content is for the sole use of the Authorised User (named subscriber), as outlined in our terms and conditions - https://www.infopro-insight.com/terms-conditions/insight-subscriptions/
If you would like to purchase additional rights please email info@risk.net
More on Regulation
Basel war on window-dressing may smooth liquidity, at a price
Changes to G-Sib charge could curb year-end repo volatility, but also cut balance sheet capacity
One year on, regulators still want a cure for bank runs
Broad support for higher outflow assumptions on uninsured deposits, but that won’t save insolvent banks
Watchlist and adverse media monitoring solutions 2024: market update and vendor landscape
This Chartis report updates Watchlist monitoring solutions 2022 and focuses on solutions for sanctions (name and transaction) screening and monitoring adverse media and its related elements
Basel Committee reviewing design of liquidity ratios
Focus on LCR and NSFR after Silicon Valley Bank and Credit Suisse, but assumptions may not change
Risk, portfolio margin, regulation: regtech to the rescue
A white paper outlining the complexity of setting the course for risk, margin and regulation
Prop shops recoil from EU’s ‘ill-fitting’ capital regime
Large proprietary trading firms complain they are subject to hand-me-down rules originally designed for banks
Revealed: the three EU banks applying for IMA approval
BNP Paribas, Deutsche Bank and Intesa Sanpaolo ask ECB to use internal models for FRTB
FCA presses UK non-banks to put their affairs in order
Greater scrutiny of wind-down plans by regulator could alter capital and liquidity requirements
Most read
- Basel Committee reviewing design of liquidity ratios
- Breaking out of the cells: banks’ long goodbye to spreadsheets
- Too soon to say good riddance to banks’ public enemy number one