The FI Revolution?
Larry Tabb suggests the time is ripe for an Fixed Income (FI) revolution. I couldn’t agree more that the FI world is antiquated with its phone-based trading, but I’m not sure that the sell side want to sign up to the prospect of an exchange, ECN or interdealer platform which will see revenue per trade impacted. I can understand the buy-side wanting this change, and a move away from Single Dealer Platforms (SDP). Why wouldn’t dealers scale there SDP to cover more accounts?
US centric article from Larry - e-trading in FI for flow products is much more mature in Europe i.e. MTS, BrokerTec, Tradeweb…