Currently ~80% of equity trades are done electronically while only 20% of fixed income trades that way. Why the gap? Fixed income instruments are customized products, which makes them difficult to price, less transparent and much less liquid.
Tencent's creating an online trading platform for Chinese bonds
Tencent Holdings Ltd. is joining forces with a finance startup to create a system for over-the-counter bond deals, banking on its appeal to the army of traders that already rely on its popular messaging services.
The SEC is taking a close look at the rise of electronic bond trading, Chairman Jay Clayton says
The SEC has set up a special committee to look at the increased level of electronic trading in the bond market, Chairman Jay Clayton said.
Since the turn of the century the surge of bond trading platforms has made a dent in the traditional fixed income business.
Most of the trading is still done via phone call or chat services, but that is changing.
Citi issues stark warning on automation of bank jobs
Retail private equity bond offers 4.35% yearly interest
China’s WeChat weighs banker-friendly messaging
Bond trading: technology finally disrupts a $50tn market
Abbie has enjoyed a brilliant start to her new job as a junior fund manager at AllianceBernstein, a $500bn investment group in New York. In her first three months she has handled thousands of bond trades worth nearly $19bn, never complaining, messing up or even taking a break.
That’s because she is an algorithm.
AllianceBernstein’s latest robotic employee did initially have a problem understanding some of the niceties of her human bosses — at first Abbie was stumped by what they meant with the word “please” — but she already handles about 35 per cent of their bond trades. The asset manager, which is considering the relocation of its headquarters to Nashville, Tennessee, is optimistic that Abbie will soon be able to automate large parts of the work of its two dozen human assistant portfolio managers.
