Benefiting from Advanced Execution in US Treasury Markets

The expanded footprint of electronic non-bank liquidity providers (NLPs) and established broker/dealers, as well as the proliferation of electronic aggregation platforms, are all adding complexity to fixed-income markets, which as a result are starting to resemble established electronic markets like equities and foreign exchange.

For market participants, this has added to the challenge of sourcing and executing on liquidity, making it essential to put the right trading technology tools and analytics in place in order to navigate the emerging liquidity landscape.

NLPs, high frequency traders and sophisticated broker/dealers are now adopting many of the systems and techniques they’ve used in faster, more liquid markets to leverage opportunities, particularly in US Treasury securities.

This white paper – based on interviews with more than 20 market practitioners – examines:

• How NLPs, broker/dealers and trading venues are impacting the structure of the marketplace
• How the electronification of fixed-income trading is driving adoption of systems more commonly used in equities and FX
• How firms are deploying new analytics, technologies and advanced execution strategies to access the increasingly fragmented liquidity