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as the gilt crisis , albeit his view on the period not being a crisis at all . “ There is always constant and evolving work that our colleagues in technology continue to perform to accommodate ever growing volumes . This does require some development work to deal with these record volumes ; it ’ s an ongoing effort ,” said Danese .
“ We typically see a clear interest from a number of clients to utilise certain trading protocols for execution at close and that trend has increased over the last few years . That requires the ability to accommodate very high volumes in a very short timeframe . From that perspective , we were happy there were no performance related issues in those markets with exceptional volatility . Rather than a crisis , from a risk transfer perspective , it ' s a confirmation that electronic trading is here to stay .”
Speaking on how trading platforms handled the period , Danese added : “ The record volumes that we saw are an indication that electronic markets continued to function correctly . From a trading perspective , resilience and reliability were there in the first place , otherwise you wouldn ' t witness these record volumes . Also , importantly , we didn ' t see a pull from electronic protocols to voice protocols . It ’ s estimated that approximately 70 % - 80 % of the European government bond market is electronic and we have seen no evidence that that number has changed in any meaningful way during those days . There were no issues managing heightened volatility or heightened volumes , and no indication that volumes shifted away from electronic marketplaces .”
Tech time Danese highlighted the importance of improved technology when dealing with situations such
Looking forward Irrespective of whether you consider the period at the end of September to be a crisis or not , it goes without saying that a lot can be learned from that window .
“ What the market can learn is that central banks have to be prepared . Central banks have to be working closely with market participants and having really good dialogue from their markets group with the key players .
“ I believe central bankers and regulators have a responsibility to understand where all the stresses could be and what would be in terms of size , a small part of the market , and how that can have a really strong impact on the broader market ,” concluded Holland .
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