The Securities Industry and Financial Markets Association today released the results of a survey that found electronic fixed-income trading accelerated globally in 2006.
The data, which was compiled from more than sixty operators of electronic trading systems for fixed-income securities in the U.S., Europe, Asia, Australia and Canada, revealed that more than 74% witnessed an increase in trading volume during the first three quarters of 2006 when compared to last year.
According to the data, nearly 68% of respondents saw transaction volumes increase by more than 5% so far this year, and 47% reported increases of at least 10%. 28% of those surveyed said volumes increased by at least 20% over the same period last year.
“Market participants are increasingly turning to electronic execution as trading platforms grow even more sophisticated,” said Michael Decker, head of research and policy analysis at SIFMA. “By combining better execution and greater efficiency with reduced costs and risks, these platforms continue to be attractive to many investors and dealers.”
SIFMA also found that the automation of trade processing continues to rise as a majority of respondents reported that their platforms provide users with direct access to global clearing organizations such as DTCC, NSCC, GSCC, Euroclear, Clearstream and Bloomberg, among others. In addition to clearing and settlement, respondents also reported offering greater access to a variety of value added products such as compliance and analytical services.