Fixed Income Trading
Fixed income traders around the world are tied to their desks, as economic storm clouds gather and volatility persists. Yet, despite desks focussing on navigating tumultuous markets, the fixed income industry has been gathering at conferences around the world to discuss the future of bond trading.
New lows in financial markets, a third pandemic winter on the horizon, signs of a waning economy, an increasingly hostile geopolitical climate, and a pullback in Wall Street spend. For traders, conditions are not getting any easier, any time soon.
There is disproportionate spending on legacy tech from the past and cutting-edge tech that might deliver an ROI in the future. The right technology partner can offer fixed income trading desks the opportunity to improve liquidity and access more venues, trading protocols, analytics, automation, productivity and intelligence.
Fixed income veterans are all too familiar with the workflow and until recently, the vast majority of bond trades (other than for U.S. Treasuries) were traded over the phone. Although stock markets hadlong since moved away from open-outcry to electronic trading, bond traders often still rely on manual practices and phone calls to locate liquidity, interact with broker/dealers, and agree on quantities and prices to execute trades.
TS Imagine recently participated in SimCorp’s 3-day International User Community Meeting (IUCM) attracting over 500 clients from around the world. For those who were not able to attend the event, we offer this summary of the history, rationale and benefits of the TS Imagine/SimCorp alliance.
This case study presents just one example of how a collaborative effort between MTS Markets International, Inc. (MTS), a data/liquidity provider, and TS Imagine (TSI), an EMS provider, helped a mutual client – Agilon Capital – optimise its corporate bond trading operation.
Fixed Income markets are based on an underlying assumption that has prevented the development of a market structure that enables liquidity, transparency, and higher volumes.