Where is Fixed Income Trading Headed?
capitalmarketsciooutlook

Where is Fixed Income Trading Headed?

By Capital Markets CIO Outlook | Wednesday, May 20, 2020

Fixed income trading is well on its way towards a technology-first destination with smarter capabilities.

FREMONT, CA: On the lookout for the best trade execution methods, the domain of fixed income trading finally seems to be making some real headway towards technological advancements. Just like equity trading, bond trading has now opened up to the world of opportunities that digital capabilities promise. With improved trading engines and data-infused workflows, everything in fixed income trading is evolving rapidly. In the process, the prospects of further transformations have also come to the fore. How these developments are stoking a revolution in fixed income trading is discussed below.

• Trading through Smart Phones and Desktops

Top 10 Fixed Income Trading Solution Companies - 2018Online platforms have become the center of all the trading activity. And these online platforms are now increasingly being accessed through apps on smartphones and desktop computers. Thus mobile technology is having a significant bearing on fixed income trading. From market news to streaming charts, everything is now available at the convenience of a swipe or a click. Many innovative features for bond trading have also been introduced through the new channels.

• Access to and Consumption of Data

As fixed-income trading adorns a modern format, both data, and the ways of data consumption have become vital. Better access to data and lowered costs of computing now allow fixed income traders to enhance trading decisions and undertake faster execution. Machines, with analytic prowess, can process vast amounts of data and relay the insights to automate trading functions. These factors are helping bring down the cost of fixed income trading while ensuring more intelligence.

• Better Pricing of Bonds

Previously pricing of bonds used to happen randomly and would depend on the whims of the traders. With advanced technologies, fixed income trading has attained a greater degree of transparency in pricing now. Automated smart pricing systems determine the value of bonds and ensure fairness in trade. Thus, visibility and transparency are becoming a part of fixed income trading.

Sophisticated capabilities that optimize trading and introduce higher levels of transparency will mark the future of fixed income trading. In the process, the trading experience is expected to improve multiple times.

See also: Top Trading Solution Companies

Weekly Brief

Top 10 Trading Solution Companies - 2019