Online Bond Trading: If You Build It, Will They Come?

December 14, 2000

Abstract

Boston, MA, USA,  December 14, 2000

?  Report Published by Celent  

In a new report entitled "Online Bond Trading: If You Build It, They Will Come?" Celent Communications examines the rapidly evolving US online bond trading market.

With the introduction of online bond trading, the once neglected US bond market is suddenly the hottest topic on Wall Street. The online bond trading market has grown exponentially, with over 75 online bond trading systems currently competing for market share.

According to Sang Lee, the author of the report, "There are too many players chasing too little liquidity at this point. Those firms without a proven source of liquidity will have a difficult time surviving in this over-crowded market in the long run." He goes onto add that, "In terms of trading volume, we expect to see a steady, but robust increase in the percentage of bond trading occurring via the Internet in the next three years, reaching close to 25 percent by 2003. "

The report provides a comprehensive overview of the US bond market and some of the barriers that online bond trading systems face as they try to attract enough liquidity to build market confidence in their services. Different types of online bond trading systems are also discussed with emphasis on strengths and weaknesses of each. A Table of Contents is available online.

Members of Celent Communication's Institutional Securities & Investments research service can download the report electronically by clicking on the icon to the left.

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 operating unit 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

 

Online Bond Trading: If You Build It, They Will Come?

Return to report Abstract.

EXECUTIVE SUMMARY  3
INTRODUCTION  4
MARKET OVERVIEW  5
  US Fixed Income Market  5
  Market Participants  7
  Market Structure  9
  Industry Conditions and Trends 11
ELECTRONIC BOND TRADING  13
  Obstacles to Online Bond Trading  13
  Types of Electronic Trading Systems 15
  Who Will the Winners Be? 16
FUTURE TRENDS 18
 
        

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