The TRADE 61 - Q3 2019 | Page 76

[ T H O U G H T L E A D E R S H I P | R E F I N I T I V ] Fixed income data: Maximising the benefits of a changing landscape The explosion of market data in fixed income is creating a host of new opportunities and challenges for the fixed income trading environment, but there are ways to benefit from the changes in this landscape, writes Jon Williams, head of fixed income at Refinitiv. A new Refinitiv report, produced in collaboration with Greenwich Associates, entitled Defining Fixed Income Data – The Value of Centralising and Normalising, takes an in-depth look at the explosion of available market data in the fixed income space and tackles the challenges associated with accessing relevant, quality data that can empower traders to identify the right trading opportunities with speed and precision. The fixed income market is witnessing an explosion of market data, which presents both benefits and challenges. With this plethora of available information, traders are faced with the task of forming a truly holistic view of available opportunities, and must do so with speed and accuracy. Refinitiv’s extensive and often exclusive partnerships with best in class providers mean that we can deliver holistic, complete and flexi- ble data from multiple sources – all in a single solution – to optimise efficiency. 76 // TheTrade // Fall 2019 The data explosion The fixed income market, much like the equities market, is wit- nessing an explosion of market data, driven by new technology, legislation and the rise of electronic trading. This burgeoning availability of data and information brings many benefits, including increased price transparency, amplified by the im- plementation of MiFID II. Instead of only indicative bids, true bids or live prices are now the norm when trading bonds. This changing landscape, how- ever, also presents a unique set of challenges as fixed income traders must determine how best to har- ness this plethora of available infor- mation to pinpoint when and what to trade, optimise their strategies, and boost their performance. The complexity of data The fixed income market remains characterised by complexity. Not only does it comprise a diverse amalgamation of securities and asset types, but the proliferation of Jon Williams, head of fixed income, Refinitiv data means that pinpointing and accessing the most relevant data sets has become highly complex for a number of reasons. Firstly, data types are numerous – including, for example, real-time