As trading activity in fixed income markets has shifted in the sizes and numbers of tickets traded, notional volumes and counterparty activity, so traders have needed to engage with one another differently. Matching the right protocols to the optimal way of transferring risk requires access to supportive and effective platforms.
We asked Mike Sobel and Jason Quinn of Trumid how they had seen market activity changing , and what impact this had on their users’ trading styles.
Transcript of interview:
Dan Barnes: Welcome to Trader TV at FILS – your insight into institutional trading. I’m Dan Barnes.
Market wide liquidity conditions have been challenging this year. And today we’re going to talk about how electrification has been helping traders through that situation. Joining me are Mike Sobel and Jason Quinn of Trumid.
Guys, welcome to the show.
Mike Sobel: Thanks Dan.
Jason Quinn: Thank you.
Dan Barnes: Mike, starting with you, what’s been the liquidity picture from your perspective?
Mike Sobel: Obviously, macro conditions have been challenging, certainly have been unforeseen events leading to volatility market wide and specifically in fixed income. From our perspective, liquidity has actually been pretty good this year. We see a relatively healthy new issue market, which is very important for both high yield and investment grade. We’re seeing overall market volumes up in the mid-single digits, which is pretty consistent with historical trends and importantly with some real yield on the asset class for the first time in a long time.
US credit is an attractive asset class and we’re seeing global interest from a broadening range of participants, which I think over the intermediate term is a really healthy backdrop for US credit and liquidity in the asset class. Specifically on Trumid, we’re seeing all of that kind of reflected in activity on the platform, but also the breadth of participation. We’re seeing growth in the client base, increasing diversification in the client base and significantly expanding usage across our set of protocols.
Over the last year or the prior year it’s been a kind of long and sustained trend of material growth. As new players become involved in credit, electronic trading continues to be more and more part of the solution. As the buy-side increase assets under management and look to do so efficiently using tools that are available on Trumid and elsewhere is a very important part of scaling their business and managing challenging market conditions and inflows to their funds and the asset class.
Read the full transcript on tradertv.net