The Bonds Electronic Trading Landscape 2017

Part 2 of Trends in Fixed Income Trading 2017

This report explores the contemporary electronic bonds trading venue landscape. Quantitative analysis of the bonds e-trading landscape aims to put into context and track the advancement of how the historically central role of sellside broker-dealers in the intermediation of liquidity flows is being eroded by regulation and is instead being replaced by new structures outside the confines of the investment bank balance sheet. In the bonds market, these structures and technological tools are increasingly focused on directly incorporating pricing and liquidity depth produced by buyside firms.

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Combining both aggregate analysis and disaggregated analysis based on the nature of the venue operator, GreySpark demonstrates significant differences in approach and service provision between the three categories of venue operators in the report. These differences result from a combination of historical and market pressures, whereby the background and origin of the venue operator influences their position in the market and how they interact with it. In doing so, venue operators are exposed to a range of competing interests on the part of market stakeholders and their response to these competing pressures further exposes differences in the approaches different types of venue operators take to the market.

Despite concerns over sufficient bonds markets liquidity and the limitations these concerns impose on finding counterparties, GreySpark analysis shows central limit order books (CLOBs) to be the most frequently offered matching methodology. The prevalence of CLOBs as well as a range of buyside-centric additional fixed income services on e-trading venues shows that the bonds market is shifting in the direction of single-tiered markets, in which all market participants have the same rights as price maker-takers, in place of the traditional multi-tiered markets.

Market-wide venue analysis is complemented by the inclusion of profiles of 15 non-bank bonds trading venues and their service offerings as well as profiles of three fixed income liquidity aggregators.

The Bonds Electronic Trading Landscape 2017 – Table of Contents

  • 1.0 Bonds & Swaps Electronic Trading1.1 The Evolution of Venue Tiering
    • 1.2 Matching Methodologies
  • 2.0 Statistical Breakdown of Bond Venues
    • 2.1 Sample Analysis: Bonds Trading Exchanges & Venues
  • 3.0 Bonds & Swaps Trading Venues
    • 3.1 Clarity Bidrate
    • 3.2 DelphX
    • 3.3 LiquidityEdge
    • 3.4 Banca IMI Market Hub
    • 3.5 MarketAxess
    • 3.6 MTS Cash
    • 3.7 MTS BondsPro
    • 3.8 OpenDoor
    • 3.9 SIX Retail Segments
    • 3.10 SGX BondPro
    • 3.11 Tullett Prebon CREDITDEAL
    • 3.12 Tradeweb Dealerweb
    • 3.13 Tradeweb Direct
    • 3.14 Tradeweb Institutional
    • 3.15 Trumid
    • 3.16 Swaps Execution Facilities
  • 4.0 Fixed Income Liquidity Aggregation Technology Providers
    • 4.1 Algomi ALFA
    • 4.2 AxeTrading
    • 4.3 TransFICC
  • 5.0 Appendices
    • 5.1 Glossary of Terms
    • 5.2 Table of Figures
    • 5.3 Methodology