Bond trading is undergoing a quiet, but fundamental change: The automation of smaller-sized bond trades. Certainly, we are in the early days of this analogue-to-digital conversion, but the effects on the microstructure of bond markets are likely meaningful – especially with respect to the costs of execution. If you think smaller trades are not relevant in corporate bond trading: 90 percent of all trades are worth less than $ 1 million. In this blog post, I elaborate on how and why banks are starting to replace dealers with machines and describe why this is fertile ground for new electronic trading platforms. Finally, I propose a hypothesis on how trading costs may evolve in the future.
From chatbots to IoT devices, conversational apps provide a richer and more natural experience for users. Dialogflow (formerly API.AI) was created for exactly that purpose — to help developers build interfaces that offer engaging, personal interactions.
"The trend is even more pronounced among millennials, who are clearly looking for self-service with benefits models that allows them to manage their accounts, but also receive advice from professionals when they need it," he adds. "Firms that can get that balance right — and offer it at a competitive price — have a huge opportunity to fulfil an unmet need."