2 Corporate Bond E-Trading: Same Game, New Playing Field With a tumultuous mid-year 2013 correction in the bond markets heightening anxiety among corporate bond market participants, the industry continues to hold out hope that electronic trading (e-trading) will be the panacea for the market’s ills. However, new research from McKinsey Citi and JPMorgan in recent weeks closed down the teams on their corporate-bond trading desks that handle smaller-size bonds known as "odd lots." And while most algorithms operate in bonds This Market Note examines publicly available trade data to break down recent developments with U.S. corporate bond trading and assess the current state of the electronic transformation occurring When the stock market turns volatile, algorithmic trading often gets the blame. Here's what investors need to know about algo trading and how it works. Credit Suisse launched its CSLiveEx algorithmic trading platform in the US in 2017. It automatically prices trades under USD 1 million notional value in investment grade corporate bonds and under USD 500,000 notional value in high yield corporate bonds. CSLiveEx provides firm, executable pricing to MarketAxess, Tradeweb, and Bloomberg.
The conversation in electronic corporate bond trading has shifted away from focusing strictly on liquidity to gathering data and analyzing relative bond pricing. “The Holy Grail in the marketplace is pre-trade transparency and it’s very hard to get that transparency,” said James Switzer, head of credit trading at Alliance Bernstein speaking at Tabb Group’s Fixed Income 2018 conference. 2 Corporate Bond E-Trading: Same Game, New Playing Field With a tumultuous mid-year 2013 correction in the bond markets heightening anxiety among corporate bond market participants, the industry continues to hold out hope that electronic trading (e-trading) will be the panacea for the market’s ills. However, new research from McKinsey Citi and JPMorgan in recent weeks closed down the teams on their corporate-bond trading desks that handle smaller-size bonds known as "odd lots." And while most algorithms operate in bonds
The boom in new corporate bond trading platforms is over. Institutional corporate bond 6 Defining Algo Trading of Corporate. Bonds. 8 Reframing All-to-All. 13 May 2019 On any given day in the U.S. corporate bond market, roughly 70% of the trades executed are for 100 bonds or fewer (equivalent to $100000 or The goal of this effort is to move big corporate bond trades from the phone and “Buy-side firms use algorithmic trading systems to break up large orders into The Automated Trading Subset of Electronic Trading . FX swaps and corporate bonds are at the low end of the spectrum, as these are more bespoke products;
Algorithmic trading (automation solutions) Portfolio trading The US corporate bond market continues to increase in size and trading volume - primarily driven by investment grade market activity. A buy-side executive on that panel said that the market is in the early stages of bond algo trading, but this executive's firms have set up an algo that automatically responds to RFQs, "with The conversation in electronic corporate bond trading has shifted away from focusing strictly on liquidity to gathering data and analyzing relative bond pricing. “The Holy Grail in the marketplace is pre-trade transparency and it’s very hard to get that transparency,” said James Switzer, head of credit trading at Alliance Bernstein speaking at Tabb Group’s Fixed Income 2018 conference. 2 Corporate Bond E-Trading: Same Game, New Playing Field With a tumultuous mid-year 2013 correction in the bond markets heightening anxiety among corporate bond market participants, the industry continues to hold out hope that electronic trading (e-trading) will be the panacea for the market’s ills. However, new research from McKinsey Citi and JPMorgan in recent weeks closed down the teams on their corporate-bond trading desks that handle smaller-size bonds known as "odd lots." And while most algorithms operate in bonds This Market Note examines publicly available trade data to break down recent developments with U.S. corporate bond trading and assess the current state of the electronic transformation occurring
Traders of investment-grade corporate bonds now use electronic networks for about a third of their transactions, up from one quarter at the start of 2019, according to research by analytics firm Algorithmic trading (automation solutions) Portfolio trading The US corporate bond market continues to increase in size and trading volume - primarily driven by investment grade market activity. A buy-side executive on that panel said that the market is in the early stages of bond algo trading, but this executive's firms have set up an algo that automatically responds to RFQs, "with The conversation in electronic corporate bond trading has shifted away from focusing strictly on liquidity to gathering data and analyzing relative bond pricing. “The Holy Grail in the marketplace is pre-trade transparency and it’s very hard to get that transparency,” said James Switzer, head of credit trading at Alliance Bernstein speaking at Tabb Group’s Fixed Income 2018 conference.