[ I N D E P T H | E M E R G I N G M A R K E T S ]
“ EM has always been an important part of our business as our dark pool protocol is well suited for trading those harder-to-trade names .”
DAVID EVERSON , HEAD OF FIXED INCOME TRADING EMEA AT LIQUIDNET
key way has been through new hires to push into new regions and establish internal processes .
" EM is a mosaic of sub-asset classes rather than a unified universe . It requires very different skills to trade EM FX versus rates or credit as the liquidity and price discovery mechanisms vary markedly . Desks that are designed to be nimble and opportunistic should be able to provide alpha through skilful execution ,” comments Sambor .
In addition , several technology vendors have been incorporating EM bonds and enhancing their offerings in other ways to service client demand .
“ As it is a very broad and growing segment of the market , it is driving managers to beef up their talent and resources . EM fixed income offers lots of benefits to clients from a risk adjusted return perspective , but it is not something you can beta efficiently . It requires resources to be able to invest effectively across a universe of 70 different countries ,” explains Espinosa .
Various hires , new initiatives , and offering enhancements in the space have peppered the headlines in recent times . Recent examples include Fernando Ortega having been appointed head of emerging market sales at KNG Securities as part of its strategy of expanding in emerging markets across all areas of its business , and Paparella who joined BTIG ’ s fixed income group in July 2024 to help expand the firm ’ s presence across Latin America .
He explains : “ Recently , more firms have expanded their emerging markets divisions in response to growing investor demand for diversification and higher-yielding fixed income assets . This involves hiring talent with specific skillsets and investing in dedicated infrastructure , including foreign offices , developing new platforms , and expanding marketing efforts .”
Various vendors have also continued to enhance their scope to meet investor demand for greater access to new jurisdictions , such as MarketAxess ’ enhancement of its Open Trading platform to include a functionality focused on the local currency bonds of Poland , Czech Republic , Hungary
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