Bond Market Automation: The Next Step in the Fixed Income Evolution

New data driven trading strategies and internal best ex opportunities have gained momentum as a result of new metadata recently made available through the robust electronification of the trade lifecycle. In recent years, new efficiency solutions, flexible and innovative execution protocols, and trade automation tools have created new data-driven opportunities for fixed income market participants.

Automation solutions that offer a rules-based approach to tailoring the data to execution expectations are the next step in taking full advantage of an electronic trading ecosystem. A surge in volume traded via automated systems is a clear appeal to a widening pool or participants. Although automated trading’s initial application may have been limited to gaining efficiencies for “simple trades”, the broader history of electronification in fixed income markets suggests that the benchmark for “simple” will rapidly change in sophistication as the pool of users continue to grow.

This TABB Group report details the transformative steps execution desks are taking to rethink the ways in which automation can be applied to traditional workflows and execution protocols such as RFQ to help participants navigate the modern fixed income landscape.