We compare the very different all-to-all offerings provided by electronic trading platforms.
A good all-to-all offering can really support electronic liquidity provision, especially if traditional dealer-to-client liquidity levels have reduced.
Over the past year, buy-side traders reported they were searching all-to-all platforms for counterparties more than ever as bank capital commitment waned, particularly in volatile periods when banks find it harder to price bonds.
However, trading desks need to justify the costs of connectivity with platforms before they can access these all-to-all pools. To support this, we looked at eight different market operators’ all-to-all offerings.
It is notable how much growth many of these have seen, indicating that both dealers and buy-side firms have been making greater use of these tools in a challenging secondary market for fixed income.
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Justine Robertson, Head of Client Strategy, Trumid
When Trumid launched in 2015, we identified a gap in the market to bring buyers and sellers together to trade round lots anonymously and electronically – our anonymous all-to-all protocol. The protocol is designed to maximise liquidity on a specific security or list of securities, bringing together a diverse network of users at a particular point in time. It has proven valuable for topical capital structures, such as new issue, which actively trade in the market.
We are one of the leading venues for electronic new issue trading, in part driven by our unique ability to provide trading and pricing transparency in grey markets.
Trumid’s market share in new issue bonds was 35.4% in April, up 34% year-over-year. Plus, our Anonymous all-to-all protocol is not a standalone protocol on the Trumid platform. It is part of an integrated ecosystem of protocols and trading solutions. Based upon their credit trading goals and preferred workflows, clients can access a full network of peers and counterparties, seamlessly moving between our Anonymous, Attributed, Portfolio, and RFQ protocols all within one Trading application.
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