[ M A R K E T
R E V I E W
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F I X E D
I N C O M E ]
“Data aggregation is
probably our number one
priority right now.”
JIM SWITZER, ALLIANCEBERNSTEIN
to trade’ via FIX IOI (indications of
interest) direct out of Aladdin with
some counterparties now, which is
a meaningful step towards access-
ing firm-executable liquidity.
a price taker. If someone’s looking for a bid on a bond,
how should the buy-side trader respond? That’s not
in the traditional buy-side skill set, but it increasingly
needs to be. With so many protocols available across
fixed income markets, the buy-side approach needs
to change. As the skill set on the trading desk evolves,
traders will become more comfortable with the newer
protocols and have better access to a wide range of
liquidity sources beyond the RFQ model.
DV: In the repo markets, the rise of electronic RFQ as
a trading protocol has been very impactful, paving the
way for orders and electronic trading, which we utilise
now. In credit trading, the emergence of automated
market-making credit algos has increased dealing
efficiency dramatically. This has allowed for buy-side
auto-ex, which is how we execute the majority of our
fixed income trading tickets (but not the majority of
risk transacted). As an emergent and cost-effective
liquidity vehicle, fixed income exchange-traded funds
(ETFs) have been a game-changer, supporting the evo-
lution of portfolio trading in credit. We’re using ‘click
MO: I’m open to new and innova-
tive ways of approaching a prob-
lem, but we don’t need vendors
to reinvent the wheel with new
technology. I’m always interested
in removing sources of friction
from the trading process as those
represent transaction costs that I’m
trying to minimise.
Technology and data are very
useful tools to improve the effi-
ciency of fixed income desks. Over-
all, technology is going to solve a
lot of problems for fixed income
desks. We’re just at the start of the
journey with artificial intelligence
but I think it is likely to add value
in future.
JS: One of the most important
things we need is a utility to con-
nect fixed income market partici-
pants and trading platforms. I don’t
think any asset manager wants to
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