LONDON and NEW YORK, March 9, 2022 /PRNewswire/ -- In the two years since COVID-driven market pandemonium reached its high watermark, the market has risen to the challenge of the new reality. Many of the changes made with respect to adopting new workflows and technology within the fixed income markets are now permanent. For markets that once significantly lagged other fixed income markets, the uptick electronic workflow and trading solutions has been tremendous in comparison to the relatively low rate of utilization over the past decade, according to a new research report published today by Burton-Taylor International Consulting, part of TP ICAP's Data & Analytics division, Parameta Solutions.
Key findings include:
- SEF trading across Interest rate, Credit, and FX swaps declined month over month throughout the last quarter of the year.
- As of 2021 year-end, electronic IG credit trades represent between 35% and 45% of the total TRACE market.
- Annually, ADV across most fixed income products traded lower than 2020 levels, in some instances significantly.
- Industry professionals predict wide adoption of Ai and similar electronic execution protocols
"2022 is shaping up to represent a turning point on many fronts for the US capital markets ecosystem.," said Colby Jenkins, senior analyst at Burton-Taylor. "The Fed will begin to unwind its balance sheet and put the brakes on its significant bond buying programs." he added.
Burton-Taylor today announced the publication of a new report covering trends in the fixed income industry. This US OTC Market Trends and Outlook: Fixed Income and Derivatives Trading report is the second in a series of reports tracking an expanding list of critical factors affecting the OTC Fixed Income and Derivatives markets. The report presents trends in trading volumes and provides insight into interviews with more than one dozen industry leaders, who share their views on the most critical issues in today's market.
This report is available for immediate download by Burton-Taylor research members through the research portal. Detailed information on the reports can be found here or the report can be purchased by contacting [email protected], or telephone +1 646 225-6696.
About Burton-Taylor International Consulting (www.burton-taylor.com)
Burton-Taylor International Consulting, part of TP ICAP Group's data & analytics division, Parameta Solutions, is the recognized leader in information industry market research, strategy and business consulting and its figures are seen as industry benchmark standard globally. For further information see www.burton-taylor.com.
About TP ICAP (www.tpicap.com)
TP ICAP brings together buyers and sellers in global financial, energy and commodities markets. It is the world's largest wholesale market intermediary, with a portfolio of businesses that provide broking services, data & analytics and market intelligence, trusted by clients around the world. We operate from offices in 31 countries, supporting award-winning brokers with market-leading technology. For further information see www.tpicap.com
SOURCE Burton-Taylor International Consulting
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