Trading in the fixed income and OTC derivatives markets is going through profound change today and will likely continue to do so over the next years. The traditional voice-brokered trading model is slowly but surely being eroded and supplanted by electronic trading and real-time capabilities. This is due to what many may call a “natural evolution” of trading being driven by technological progress, regulatory rules and pressures, and the strive for higher profitability and cost efficiencies—all resulting in an increasing electronification of markets (and an increase in trading complexity as well).
At the same time, also driving this change are the entrance of new market participants and the challenge of the increasing need to price, trade, and manage risk in real time. In order to endure, trading institutions will have to adapt and innovate, and not be hindered by fragmented IT legacy systems and processes.
An event Numerix hosted on July 12, 2018 for buy-side and sell-side market participants examined these forces that are driving the electronic evolution of the fixed income and OTC markets and the implications herein. Featured were special guest presenters from trueEX, Greenwich Associates and EY, as well as Numerix experts.
The article, Adapting to Change in the Electronic Fixed Income and OTC Markets: Have We Reached an Inflection Point?, highlights the discussions held at the event, which focused on the markets’ significant structural changes, the challenges that resulted, and how market participants can remain competitive. The information and insights garnered from the event were both dynamic and revealing and left little doubt that the transformation of these markets will continue in the coming years.
Request your copy of the article here.
