This report highlights how e-trading technology can provide new ways for investment banks to maximise the efficiency of their dealing activities as part of a broader effort across the industry to move from a principal model of trading to an agency, broking-centric trading model.
GreySpark forecasts that sellside efforts to develop e-trading business models for trading bonds will evolve to match a new set of industry practices that emphasise balance sheet efficiency.
In many banks, the business model imperatives governing balance sheet efficiency are seen as the costs associated with new investments in technology solutions that allow for more sophisticated fixed income dealing analytics on a trade-by-trade basis, especially in corporate bonds trading.
For IRS, GreySpark’s research shows that the majority of OTC derivatives volumes will become e-traded by 2016 to match current levels of e-trading overcapacity for all but the most exotic swaps instruments.
