Countering vanishing liquidity through market diversity

Buy-side bond traders are finding greater autonomy in their access to liquidity through the diversity of counterparties available via electronic trading platforms. Quantifying price improvement in e-trading is challenging, but trading against the market allows greater certainty of execution, or even creates alpha opportunities.

Finding liquidity and pricing is available from a more diverse range of sources than ever before is allowing them to continue trading in volatile conditions, and letting them seize opportunities when sell-side firms might step back from the market.

Nicolas Masso and Graham Cox, global co-heads of UBS Bond Port, analyse that growth with an in-depth look at both quantitative and qualitative trends, including new market participants, the continuing expansion of sell-side participation trading and trading volume.

Published on November 2, 2020

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