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.
The so-called digital transformation of the ways in which investment banks operate as businesses overall began more than one decade ago. However, not all of the technology that banks needed in order to fully realise this transformation has always been readily available, and the last five-to-10 years have seen a significant rate of growth in the data processing and analytics needed to realise ideas that have been gestating for some time.
Over the past 18 months, GreySpark Partners has observed that the structure of the flow FX market – consisting of spot FX and vanilla OTC swaps, forwards and futures – has continued its incremental evolution.
GreySpark Partners presents a report that provides investment banks with guidance on how to build a forward-looking, self-regulating sellside institution that has the flexibility to adjust to ongoing regulatory demands and the resilience to remain competitive within the industry.
Investment banks have traditionally structured their operational activities along discrete business lines, which were traditionally split up by asset class and geography.