Oliver Haste

This move has allowed stakeholders insight into what CTs could look like, aimed at allowing participants to begin planning for how they might use the tapes.

Oliver Haste, chief administrative officer, designate, Bondtape, said: “These prototypes show the market that we are already capable of delivering robust, high-quality tapes and that we are committed to working together with the industry to develop the best product. 

“While these prototypes are only a small window into what the final tapes will look like, we believe in the power of demonstrating working products as early as possible to inspire confidence and seek actionable feedback.” 

Focused on both the EU and UK’s transparency regimes respectively, the prototypes consist of a ‘blotter’ each, comprised of the trade reports published on a given day. 

Specifically, the blotter updates intraday and includes a sorting and filtering functionality, allowing users to search by: maturities, venues, specific sets of international securities identification numbers (ISINs), and other areas. 

Read more: EU and UK regulators reveal updated plans for bond tape frameworks

According to Bondtape, the prototype “includes a functionality to ‘cleanse’ the reports, removing ‘out-of-date’ entries and leaving only the most recent, accurate version of a trade report,” importantly meeting FCA requirements for providers to offer both ‘raw’ and ‘clean’ data, which when used in practice work to prevent the ‘double-counting’ of trades.

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The bond index franchise includes bond indices spanning government, credit, and emerging markets bonds.  

In addition, the franchise includes tools and analytics which support the bespoke development of fixed income exposures. 

“We are excited to announce another significant step forward in our index expansion strategy, designed to strengthen our fixed income indexing capabilities, and broaden the services we provide to a growing international network of clients and partners,” said Tom Hendrickson, president, TMX VettaFi.  

“We see tremendous opportunity for indexing across the fixed income asset class – especially with the growth of bond ETFs – and we look forward to partnering with even more asset managers to unlock new bond ETF innovation.”   

Read more: TMX Group expands data-driven analytics and indexing solutions through $848 million VettaFi acquisition 

The development becomes the fourth acquisition by TMX VettaFi over the past 18 months. Recent acquisitions include iNDEX Research in October 2024, the ROBO Global index suite in April 2023 and EQM Indexes in September 2023.  

“Today fixed income represents approximately 20% of the ETF market, yet the total global bond market is $140 trillion, compared to the $115 trillion global equity market,” said Brian Coco, head of index product at TMX VettaFi.  

“With even stronger fixed income indexing capabilities,  VettaFi can truly provide outcome-oriented solutions to our clients across asset classes, as well as more precision exposures within fixed income.”  

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Goldie joins the investment manager from Morgan Stanley where she spent the last three years. 

During her tenure at Morgan Stanley, Goldie most recently served as a trader, a position she held for over a year, having previously worked as a portfolio management associate.  

Elsewhere in her career, Goldie held various portfolio management-related roles at Eaton Vance.  

Goldie announced her appointment in a social media post.  

Last November, fixed income investment bank KNG Securities also tapped Morgan Stanley for a new fixed income sales appointment –Mert Kisacik, now responsible for Turkish and Israeli markets.  

Kisacik had previously spent two years at Morgan Stanley, most recently as part of the bank’s emerging markets cross asset sales team. 

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The deal was first announced last September, and will see StoneX further enhance its fixed income offering and reach across Europe.

Octo Finances specialises in bond and convertible sales, debt capital markets, and credit research, serving clients including: banks, insurance companies, private debt funds, mutual funds, and private wealth managers. 

Anthony Di Ciollo, global head of fixed income at StoneX, said: “We’re thrilled to officially welcome Octo Finances to StoneX Group and believe the company will provide us with significant new capabilities. Our joint planning is well underway, and we are excited by the opportunities for growth for the combined business in Europe.” 

Read more: Fireside Friday with… StoneX’s Philip Smith

In the lead up to the deal last year, StoneX made a number of fixed income-focused hires across 2024, including former head of trading at Incline Global Management, Evan Halpern who was appointed managing director of fixed income outsourced trading in January, and Simon Pickworth, former MUFG, who was made an institutional fixed income trader for Central and Eastern Europe, Middle East and Africa (CEEMEA) in April.

Speaking at the time the acquisition was announced, Talabor Szabo, chief executive and co-founder of Octo Finances, enthused that “joining StoneX [is] a natural fit for Octo Finances.

He added: “StoneX’s commitment to innovation and client service aligns perfectly with our values and vision for the future. We are thrilled about the new opportunities this acquisition will bring and are eager to work together to enhance our offerings and grow our presence in the market.” 

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He joins the bank from Mizuho International, where he most recently served as director within emerging markets credit sales.

Elsewhere in his career, Williams held credit sales-related roles at VTB Capital, BNP Paribas, ING Nederland and CIBC World Markets.

Speaking in an announcement, KNG Securities added that Williams’ previous experience will help strengthen the bank’s focus on emerging markets credit.  

“We’re delighted to welcome [Williams] to KNG, as we strengthen the knowledge and expertise that our clients value in emerging markets globally,” said Andrea Podesta, managing partner at KNG Securities.

“Edward’s hiring, with his 30 years’ experience in EM debt and proven track record of managing high performance teams, shows our continued commitment to our clients and EM in general.”

KNG Securities’ emerging market team covers geographies including Latin America, Middle East, Turkey and present and former CIS countries.

His appointment follows that of Mert Kisacik, who joined KNG Securities’ fixed income sales team in November, holding responsibility for Turkish and Israeli markets.

Read more: KNG Securities taps Morgan Stanley for new fixed income sales addition

“I’m very pleased to be joining the team at KNG. The firm has a reputation for its strategic focus on emerging markets fixed income, and I look forward to contributing

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Interested parties are invited to register and submit requests to participate by 7 February 2025 – after which ESMA will assess these requests against the ‘exclusion and selection criteria’ before successful candidates are invited to submit their official applications. 

​Speaking in its most recent announcement the watchdog reiterated that “the CTP aims to enhance market transparency and efficiency by consolidating trade data from various trading venues into a single and continuous electronic stream”.

Adding: “This consolidated view of market activity should help market participants to access accurate and timely information and make better-informed decisions, leading to more efficient price discovery and trading.” 

As previously communicated, ESMA is set to appoint a CTP by early July 2025, with the successful applicant invited to operate the consolidated tape for a five-year period. 

In December 2023, Etrading Software confirmed plans to bid to become the consolidated tape provider (CTP) for both the UK and EU. This followed the announcement that the Bloomberg, MarketAxess and Tradeweb JV was off the table. 

Ediphy has also confirmed its intention to bid for the European fixed income tape, as of last September, as well as also gearing up to apply in the UK. 

In addition, firms FINBOURNE and Propellant have also been involved in industry discussion around potential applications to the bond CTP in Europe and the UK.

Speaking to The TRADE about the launch of the first stage of the CTP selection procedure, Neil Ryan, consultant at FINBOURNE, said: “ESMA’s phased approach to the CTP selection process is a welcome move toward ensuring a robust and effective outcome. The focus on a system that aligns with the technical intricacies of fixed income markets and adapts to their unique requirements is critical.

“The proactive elements of this process are more measured and better attuned to the market’s needs, paving the way for a high-quality consolidated tape at a reasonable price. Prioritising high quality, accurate data is essential – without this, the CT risks undermining its effectiveness and eroding the trust of market participants.”

More to follow…

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Next year will see further market structure changes in fixed income. In dealer to client (D2C) markets for both rates and credits, the number of in-bound RFQs is rising exponentially, driven by all to all trading and the use of algo tools. While many of these tickets are small in size, they provide important data, are useful for dealers with positions and assist with execution statistics. We have already seen some dealers automate these lower value RFQs, but 2025 will see this accelerate to the point where the majority of dealers will need to look at solutions which support auto quoting and/or auto execution.  

The velocity of dealer to dealer (D2D) rates markets is increasing and in 2025, we expect more dealers to invest in co-location and access to alternative liquidity sources to place and adjust orders at micro second levels. Ultra-low latency is not simply a nice to have but is needed for dealers to remain competitive. 

Next year will also be the year when consolidated tape providers will be selected for the EU and the UK. We expect to hear a great deal about this throughout the year as the market moves towards a more transparent structure.

Liz Kirby, managing director, head of market structure, Tradeweb 

One of the key regulatory trends to watch in 2025 will be the SEC’s central clearing mandate for US Treasury transactions, particularly as it extends to repurchase agreement (repo) trades by 2026. While the initial phase of the mandate, slated for December 2025, focuses on US Treasury cash clearing, the most significant changes will come in the final phase, set for 30 June 2026, when repo transactions are brought into scope.

This mandate represents a major shift aimed at enhancing efficiency and transparency in the $4.5 trillion repo market, which has traditionally been relationship-driven, low-margin, and largely uncleared. Given the size, complexity, and short-term nature of this market, implementing central clearing poses some unique challenges. In 2025, our focus will be on collaborating closely with clients and market participants to craft tailored solutions that address these issues.

Derek Kleinbauer, global head of fixed income and equity e-trading, Bloomberg

In 2025, the upcoming US Treasury/repo clearing mandate will introduce some changes to the existing trading workflow and will have an impact whether trades are done via voice or electronically. Bloomberg is working closely with clients to ensure they have access to the necessary workflows in place and are well positioned to meet the mandate requirements.
  
Algorithmic trading will continue to gain traction across fixed income, as market participants are looking to leverage algos to execute trades, manage their risk, and optimise execution costs. We expect usage to grow in US Treasuries and will eventually be followed by adoption in other asset classes including corporate bonds.
  
In emerging markets, particularly Asia, we also see real opportunity for growth. In 2024, we’ve observed record electronic trading and a significant growth in trade volumes, average trade size and the number of clients who are active in these markets. This growth may represent an inflection point having been reached in the adoption of electronic execution. With India and Korea being added to major indices, this will further boost the year-over-year growth in electronic trading in emerging markets and the region remains a top focus for us.

The post The TRADE predictions series 2025: What to expect in fixed income – part two appeared first on The TRADE.

As we look ahead to 2025, we see it as a transformative year in how and what we trade. A convergence of trends is set to disrupt traditional norms and create opportunities for those that are thinking ahead. 

Our members tell us their industry is adapting to the pressures from indexation, prompting strategic mergers to achieve scale, and diversification into asset classes such as fixed income, derivatives, interest rate products, energy and commodities. This evolution demands agility from dealers who are being asked to adapt, creating opportunities to diversify skills and foster the exchange of specialist knowledge. 

The liquidity and market structure landscape across asset classes is also shifting. New entrants are reshaping traditional markets like equities and creating new ones like crypto. The dominant delivery mechanism for this liquidity will be electronic and automated. For our members, the challenge will be navigating these new sources of liquidity while applying common best execution principles to the process. For asset managers, maintaining quality execution expertise in this changing landscape will be critical for sustained fund performance. 

Andy Mahoney, managing director, EMEA, FlexTrade  

Market structure across asset classes has started to cross-pollinate increasingly, with workflows widespread in one asset class now cropping up as “innovations” in others. The overriding theme that will develop significantly in 2025 is the desire to connect liquidity providers with consumers in as direct a manner as possible.  

We’ve already seen the first signs emerging in 2024 with the rise of direct-to-buy-side connectivity, where liquidity providers of various types create private, curated price streams for the buy-side, who can then engage at their discretion. For some providers, notably those born in the deeply interconnected world of FX, this is nothing new, and they come with the native ability to widen spreads in response to various factors. For others, disclosing closely held liquidity is a more uncomfortable proposition, which is where technology providers will need to step up in 2025.  Reducing the information asymmetry between liquidity provider and consumer will be critical to enabling both sides to engage willingly.  

As this trend evolves, having a single entry point to the market – regardless of asset class – will become crucial. Lessons learned from one asset class can be ported to others without reinventing the (algo!) wheel. A flexible automation framework capable of operating across asset classes while observing the nuances of each will enable firms to transition to the long-anticipated model of a “true” multi-asset trader.  

Chris Bruner, chief product officer, Tradeweb  

The end of 2024 finds markets more interconnected than ever, as technology continues to shape multi-asset class execution in response to increasing demand for a unified, one-stop approach to trading across different products, geographies and client channels. This development has helped prime financial markets for the advent of a distributed ecosystem that democratises global financial markets and facilitates seamless, efficient and scalable interoperability for market participants.    

As investors continue to seek greater exposure to digital assets, emerging technologies such as blockchain could further drive electronification across newer adjacent markets. We will, therefore, be focused on exploring how these technology solutions could be harnessed in different regulatory environments to meet growing market demand.   

Bianca Gould, head of fixed income and equities EMEA at BNY  

Consolidation within the industry has increased the focus on operational efficiencies and we see this trend continuing into 2025. Clients are looking to reduce the overall number of partnerships they need to maintain. BNY’s multi-asset execution offering, with an execution-to-custody proposition and middle office support, is well-positioned to solve for many of our clients’ challenges across the trade lifecycle by utilising our trade execution solutions.  

BNY is working across the enterprise globally to enhance our ecosystem to be more for our clients. As the industry continues to focus on this topic, BNY is innovating to ensure that in addition to providing our core trade execution function, we can offer various operational efficiency solutions. 

Kevin O’Connor, global head of sales, portfolio solutions, State Street Global Markets   

State Street’s industry research in 2024 revealed that outsourced trading is an emerging trend that is providing users with a distinct advantage over the rest of the market. Those research findings provide proof of the many benefits of outsourced trading including efficiency gains, cost reductions, and improved investment performance. It’s no wonder then that we found from our survey of 300 global institutional investors that the vast majority of current users are “satisfied” or “very satisfied” with their experience and plan to expand usage.     

As we move into 2025, State Street expects to see greater adoption and global expansion of outsourced trading especially by larger firms in search of higher investment returns and cost efficiencies.  While we expect adoption across regions, expansion plans are particularly prevalent in EMEA, and according to our research, funds of all sizes are planning to expand their use of outsourced trading in that region.  We also expect to see more firms expand their usage across asset classes, outsourcing more complex asset classes such as derivatives, foreign exchange, and swaps.

The post The TRADE predictions series 2025: The cross-asset perspective appeared first on The TRADE.

The evolution taking place in fixed income markets has laid the foundation for the recent growth in credit index futures, positioning 2025 as a pivotal year for further proliferation of the product and broad adoption by the market. Advancements we’ve seen in market infrastructure, such as the electronification of trading, real-time bond and ‘liquid’ index pricing, as well as enhanced analytics on Terminal to compute fair value and identify relative value opportunities, have transformed how buy-side firms are managing and trading credit risk. These trends will continue, enabling greater price transparency and standardisation of this market which, historically, aids in the development of exchange traded products like credit index futures. 

The existing contracts provide broad-based exposure to the European, US and emerging market corporate bond markets utilising Bloomberg’s fixed income benchmarks. In 2025, we envision an expansion of this global credit futures complex, allowing investors to target regional credit markets and specific risks such as duration, sectors, or credit quality, providing a more diverse range of tools for those seeking local exposure and precision. This will lead to increased cross-margining opportunities with correlated products, amplifying the utility and cost-effectiveness of the product. 

For global credit, we enter a year of uncertainty in 2025, with resilient corporate fundamentals and potential easing of monetary policy offset by ongoing geopolitical tensions. Investors will continue to find value in a flexible credit vehicle that can be used to deploy capital quickly, express a tactical view or hedge corporate credit exposures. The product will continue to attract a diverse range of market participants, from asset managers to insurers, looking for narrow bid-ask spreads and tight tracking to the benchmark. We expect further normalisation of credit index futures as a core instrument in credit markets.

Charlie Campbell-Johnston, head of automation, international, Tradeweb 

The last few years have thrown fixed income traders one curveball after the other, and automation has proven itself as an effective tool to deliver scalability and time efficiency across different products and through a range of trading protocols. On the other hand, systematic and cross-asset funds have used automation to create new trading activity and realise new strategies. 

The game, however, could change in 2025. A combination of technological innovation and high-quality data would enable traders to adapt their automation parameters to actual real-time market scenarios, giving them even more control over the trade execution process. After all, automation has already transcended its operational efficiency origins and this evolution would cement its hard-earned place at the core of a dynamic and innovative execution desk. 

Tucker Dona, head of business development, Baton Systems 

We are one-year away from the mandatory central clearing of US Treasuries, which is going to have a material impact on the way that firms post margin for this product. Firms wanting to offset the impact of higher margins need to spend 2025 making operational changes and upgrades to optimise their systems for trading and clearing US Treasuries. However, there is still more clarity needed on which CCPs market participants will choose to clear these products, and which model participants will use, such as sponsored or done-away. Thankfully, much of the operational preparation and workload can be done efficiently with support from vendors providing direct connectivity into the CCPs.

If firms are not able to efficiently optimise and mobilise available assets across the range of CCPs they will use for clearing US Treasuries, they are going to face operational and cost challenges. By using data-driven insights to select the most eligible and opportunistic collateral for the different clearing venues and then being able to execute all movement instructions, firms can manage the higher margin levels more effectively. They will also be able to reduce associated costs, and more efficiently manage better their collateral usage and its impact on available liquidity. 

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By leveraging Broadridge’s Securities Finance and Collateral Management (SFCM) solution, FAB will be able to bolster its coverage of global fixed income and equities markets.

The development comes as part of the bank’s drive to expand securities lending in the UAE and wider Middle East.

“This collaboration caters for the growing demand for securities lending and borrowing within the Middle East and is aligned both with local regulatory needs and with international best practices,” said Darren Crowther, head of securities finance and collateral management at Broadridge. 

Broadridge’s provision of its SFCM platform — the first AWS SaaS deployment in the region — demonstrates a renewed focus in the Middle East and indicates readiness to support FAB’s strategic goals, the firm said in a statement.

As FAB navigates the evolving landscape of securities borrowing and lending regulations in the region’s markets.

The collaboration is also expected to yield new opportunities and efficiencies for FAB that will benefit clients across the globe – particularly as it navigates the evolving landscape of securities borrowing and lending regulations in the region’s markets.

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