E-Bond Trading 2004: Going Beyond Trade Execution

March 30, 2004

Abstract

Boston, MA, USA March 30, 2004

Celent anticipates that by the end of 2007, more than 60 percent of fixed income trading will occur electronically.

After three years of intense competition, bankruptcies and consolidations, the electronic fixed income market has stabilized and is poised for a new phase. In a new report, " ," Celent examines the growth of the U.S. fixed income market as well as the key trends affecting the ongoing development of the electronic fixed income market. The report profiles five leading trading platforms in the U.S. market: TradeWeb, MarketAxess, TheMuniCenter, eSpeed, and ICAP.

According to Sang Lee, manager of Celent痴 securities and investments practice, "The e-bond market is no longer just about trade execution." Lee adds, "We expect to see increased efforts in creating a full-STP solution for the fixed income community."

In 2000, the enormous market excitement was based on unrealistic, hyped-up expectation levels and a lot of vaporware. However, this time around, market optimism is based on realistic client expectations and tangible trade volume. After a couple of years of uncertainty, it has become clear that the electronic fixed income market is here for the long haul and the real competition appears to be just beginning.

A is available online.

of Celent Communications' Institutional Securities & Investments research service can download the report electronically by clicking on the icon to the left.  Non-members should contact info@celent.com for more information.

        

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Celent is a research and advisory firm dedicated to helping financial institutions formulate comprehensive business and technology strategies. Celent publishes reports identifying trends and best practices in financial services technology and conducts consulting engagements for financial institutions looking to use technology to enhance existing business processes or launch new business strategies. With a team of internationally based analysts, Celent is uniquely positioned to offer strategic advice and market insights on a global basis. Celent is a member of the Oliver Wyman Group, which is a wholly-owned subsidiary of Marsh & McLennan Companies [NYSE: MMC].

Media Contacts

North America
Michele Pace
mpace@celent.com
Tel: +1 212 345 1366

Europe (London)
Chris Williams
cwilliams@celent.com
Tel: +44 (0)782 448 3336

Asia (Tokyo)
Yumi Nagaoka
ynagaoka@celent.com
Tel.: +81 3 3500 3023

Table of Contents

 

Boston, MA, USA March 30, 2004

E-Bond Trading 2004

Return to report Abstract

 

EXECUTIVE SUMMARY 3
INTRODUCTION 4
MARKET OVERVIEW 6
  Fixed Income Market Review 6
  Attractive Market Potential 9
  Key Market Trends in E-Bond Trading 10
  Projected Adoption of E-Bond Trading 12
LEADING PLATFORMS 14
  Brokertec -- An ICAP Platform 14
  eSpeed 18
  MarketAxess 21
  TheMuniCenter 25
  TradeWeb 27
PLATFORM COMPARISONS 30
FUTURE TRENDS 34
OBJECTIVITY & METHODOLOGY 35

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