A survey conducted by Charles River, a front- and middle-office investment management solution provider, finds that the greatest market challenge facing fixed income traders is “discovering and accessing liquidity.”
The survey was conducted during a recent webinar with over 100 global buy-side participants, Charles River says. Survey participants also called the transition to electronic trading the “greatest operational challenge,” officials say.
“Sell-side bond inventory has declined nearly 80 percent since the 2008 market crash, forcing fixed income traders to look seriously at new electronic platforms, and learn how to take advantage of these opportunities,” Karl Kutschke, Charles River’s senior director for product management, says in a prepared statement. “At the same time, brokers are looking for more effective ways to interact with the buy side.”
Specific market challenges reported by webinar-survey participants are:
- 53% cite discovering and accessing liquidity as the greatest challenge;
- 36% feel challenged by adapting to regulatory changes;
- And 21% of respondents are concerned with ensuring best execution for trades
Specific operational challenges reported by webinar -survey participants are:
- 41% of those polled believe transitioning to fixed income e-trading is the greatest Ops challenge;
- 36% say they are concerned with obtaining accurate and timely pricing data;
- 18% cite minimizing trading costs and slippage;
- And 5% are challenged by retaining and accessing past trade history
Charles River tallies more than 350 investment-firm clients in 44 countries, “in the institutional asset and fund management, private wealth, alternative investments, insurance, banking, and pension markets.”
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