Buy-side Perspectives Issue 3 - Page 9

Fixed income This year, the top themes emerging from the ATF buy-side debates in the Nordic and DACH regions in fixed income were how to find liquidity, which trading venues are best, how to make the most of TCA and how to prepare for MiFID II. Due to reduced liquidity in fixed income, the buy-side spends more time searching for liquidity. Some counterparties on the sell-side have changed their models to reduce risk, but they haven’t always passed on the cost saving to the buy-side. In addition, the Swedish buy-side is concerned about reduced levels of issuance, while the Danish buy-side is worried about posting collateral for OTC derivatives. Overall, not all buy-siders are convinced that electronification of the market is the best answer, particularly given the costs of connectivity and the new higher transparency environment. During the ATF Nordic debate in March, it was re-iterated, as so many times before, that the buy-side would need some kind of aggregation system for pre-trade information. 9