Lack of Pre-Trade Price Transparency

Risk Magazine (2017)

Pricing In The Dark

Asset mangers claim they have an information edge over dealers when it comes to bond pricing. How are sell-side players countering the threat? read more »

Tabb Forum (2016)

Will The Buy Side Become Fixed Income Liquidity Providers

One of the obstacles impeding the buy side from price making is the lack of pre-trade transparency data from the electronic trading venues, said officials at the Markets Media event.

Regulators are also placing more emphasis on best execution, so the buy side needs more access to pre-trade data, trading tools, and aggregation of data from electronic trading venues.

Since the buy side must demonstrate best execution, it needs to know the prices of bonds and analyze pre-trade data before it can bid for bonds.

Whether it’s TRACE, SDR, or data from indications of interest
on an aggregated basis, noted the buy-side trading source, referring to the Financial Industry Regulatory Authority’s Trade Reporting and Compliance Engine and the Depository Trust & Clearing Corporation’s Swap Data Repository. Currently, there is no venue that is providing this to the buy side in a way that it can easily consume, suggested the buy-side trading source.
read more »

The Bond Buyer (2016)

The Missing Quotes

The regulations fail to call for or help establish what is missing in the fixed income market – a consolidated quote feed. read more »

Bloomberg (2015)

Bondcube Failure Reveals Pricing Flaw in $8 Trillion Bond Market

“The price discovery element is quite critical,” said Will Rhode, global head of capital markets research at the Boston Consulting Group. “With little data in a bilateral negotiation with two different viewpoints, it’s hard to get something done.” read more »