Paris, France
October 6, 2004
 
Electronic Trading in European Fixed Income
Markets
Report Published by Celent
In a new report, "Electronic Trading in
European Fixed Income Markets," Celent examines the European
fixed income markets, providing detailed informations on the inter-dealer
markets and dealer to client markets in both government bonds and
non-sovereign bonds. Major players in the industry (MTS, eSpeed, BrokerTec,
Tradeweb, Bondvision, etc) are analyze through case studies in this
report.
According to Axel
Pierron, Celent Analyst and author of the report, "There are
two major facts in the european fixed income markets: first most trade
occurs on the sovereign bond market (the average daily trade volume for
government bonds is more than _ 83 billion, versus _ 30.8 billion for the
non-government bond markets). Secondly, the market is dominated by
inter-dealer trading, which represents more than 65 percent of the
government bond market and over 70 percent of the non-sovereign fixed
income market.
Despite a real interest from market participants for
electronic trading and a global growth of the amount outstanding in
European fixed income markets, the lack of uniformity among these markets
(primary markets, regulations) complicate automation. Banks’ domination
as market participants and the lack of a pan-European clearing and
settlement house are also huge handicaps. "In Europe, market
participants that want to operate in different countries need to establish
subsidiaries in each country, as there is no pan-European clearing and
settlement institution. Euroclear and Clearstream were developed to fill
this need, but national legislation makes it difficult to operate on a
pan-European basis. This reinforces the fragmentation of the European
fixed income market, a juxtaposition of 15 smaller markets" add Axel
Pierron.
The report goes on to provide a clear understanding
of the different markets with marketshare of participants, trading habits,
technology, etc.
The 48-pages report contains 31 figures and 9
tables.
A Table of Contents
is
available online.
Fixed income electronic trading will be
discussed at an upcoming roundtable hosted by Celent on December 9, 2004
at the Crowne Plaza London - The City. Scheduled panelists include
representatives from, Deutsche Bank, Dresdner Kleinwort Wasserstein,
Merrill Lynch and TradeWeb. Click
here for additional information on this event.
|
