Recycling risk is moving to the top of the agenda

Published on 15 November 2023

The speed and efficiency with which dealers can recycle risk is key as they take on and then offload positions for buy-side clients. Market operators can help dealers to optimise this activity through the provision of session-based trading protocols, also known as sweeps or rebalances, which are designed to help traders efficiently execute large lists of line items electronically.

David Everson, head of fixed income trading, EMEA for Liquidnet, explains how this protocol works for the sell side, what is allows dealers to potentially achieve, and why the current market conditions are ramping up interest as volumes and notional traded increase.