Greenwich - European FI Market Structure

25 March 2014 in THE BOND MARKET by Tim Binnington

A MUST read report by Greenwich about the impact of new regulation on the Financial Market and how information technology is the solution!

"European banks are feeling the impact of regulations, finding it difficult to compete in fixed income with capital-constrained balance sheets. As a result, better-capitalized U.S. banks — and to a lesser degree new entrants — are taking fixed income market share. With inventory both spread out among more dealers and more concentrated in buy-side hands, institutional investors are increasing their number of counterparties in search of liquidity. Electronic trading can help liquidity, but growth of online trading volume remains tepid due to the nature of fixed-income markets. New solutions utilizing current technology and an all-to-all structure could help create a new market normal."

For the report, click here.