Combining both aggregate analysis and disaggregated analysis based on the nature of the venue operator, GreySpark demonstrates significant differences in approach and service provision between the three categories of venue operators in the report. These differences result from a combination of historical and market pressures, whereby the background and origin of the venue operator influences their position in the market and how they interact with it. In doing so, venue operators are exposed to a range of competing interests on the part of market stakeholders and their response to these competing pressures further exposes differences in the approaches different types of venue operators take to the market.
Despite concerns over sufficient bonds markets liquidity and the limitations these concerns impose on finding counterparties, GreySpark analysis shows central limit order books (CLOBs) to be the most frequently offered matching methodology. The prevalence of CLOBs as well as a range of buyside-centric additional fixed income services on e-trading venues shows that the bonds market is shifting in the direction of single-tiered markets, in which all market participants have the same rights as price maker-takers, in place of the traditional multi-tiered markets.
Market-wide venue analysis is complemented by the inclusion of profiles of 15 non-bank bonds trading venues and their service offerings as well as profiles of three fixed income liquidity aggregators.
