NEWS UPDATE
TRADING VENUES
LedgerEdge closes three years after launch
The bond trading platform has gone into administration , despite continued client support and improved traction in 2023 .
Start-up bond trading platform LedgerEdge has closed three years after its establishment due to “ an extremely challenging funding environment ”, the organisation has confirmed .
The business was launched by industry veteran and founder of blockchain consortium R3 , David Rutter , in a bid to digitise the traditional corporate bond market . The firm focused on expanding the reach of electronic trading and providing market participants an alternative model .
LedgerEdge enjoyed many successes during its run and a high degree of market support – notably from buy-side players . However , market conditions and prolonged timeframes proved too much for LedgerEdge to sustain .
“ An extremely challenging funding environment was not conducive to extending the runway for the business , despite improved traction in 2023 and strong client support ,” said LedgerEdge when approached by The TRADE .
“ LedgerEdge was a well-conceived model with huge potential and support to solve the challenges of finding and promoting corporate bond liquidity . As is the case with new technology and protocols , there are many barriers to entry and success , especially when it comes to onboarding and adoption . This is particularly true of the corporate bond market which is traditional and used to legacy protocols , operations and ingrained technology .”
TECHNOLOGY
E-trading development in US rates and credit centred on innovation , not growth , report finds
Trading via RFQ is continuing to grow in line with increased automation , with the market moving towards a modern algo-driven protocol , finds Coalition Greenwich .
8 // TheTRADE // Q3 2023
While both rates and credit saw an increase in e-trading since last year , according to Coalition Greenwich ’ s August data spotlights the key takeaway is how development is proceeding in terms of innovation , as opposed to volume .
US corporate bond results saw IG e-trading and HY e-trading both increase year on year , by 2 % and 1 % respectively , while the rates market saw a 4 % increase in dealer-to-client e-trading .
However , according to Coalition Greenwich , “ the story going forward is not one of e-trading growth , per se , but e-trading innovation and evolution ”. This comes as credit e-trading remained comparatively similar compared to the previous year , while overall e-trading in US rates in fact declined by 3 %.
Trading via request-for-quote ( RFQ ) is reportedly continuing to grow in line with increased automation – with the market moving towards a modern algo-driven protocol .