How e-trading and algo trading can give a better handle on rates markets

Published on 3 October 2022

Electronic and algorithmic trading is transforming rates trading. Following the whipsawing effect of fiscal policy on UK government bonds last week, we assess the broader challenges around trading in rates markets today, and how to optimise access to liquidity even in challenging market conditions.

Nicola Danese, head of fixed income, and Colm Murtagh, managing director and head of US institutional rates at Tradeweb, review cash, swap and repo market activity in the rates space across European and the US so far in 2022, with a direct perspective on how and where traders have been most effective in finding best pricing and trade execution.

As risk taking in electronic trading increases, from inflation swaps to accessing securities financing through repo trading, both traditional liquidity providers and new players are developing new algorithmic trading solutions to optimise trading and minimise information leakage.