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Executive Summary

Greenwich Associates recent research finds that 35% of the total volume traded in the major fixed-income products in Europe was electronically executed in 2014, according to over 1,200 institutional investors interviewed.

This support of e-trading is broad-based and sustained across government, investment-grade and high-yield credit markets, with the first two segments seeing more than half of their volume executed electronically in 2014. The trend is clearer than ever: Bond markets are migrating toward a more electronic model, with voice trading more often reserved for less-liquid markets or large-sized trades.

Firms wishing to compete will find that a well-thought-out e-trading strategy is the foundation for sustained profitability.

Methodology

Between July and September 2014, Greenwich Associates conducted 1,261 interviews with senior fixed-income investment professionals at banks, fund managers/advisors, insurance companies, corporations, central banks, hedge funds and other institutions throughout Europe and the Middle East. Countries where interviews were conducted include Austria, Belgium, Bulgaria, Croatia, Czech Republic, Denmark, Estonia, Finland, France, Germany, Greece, Hungary, Israel, Italy, Jordan, Latvia, Lithuania, Luxembourg, Malta, Monaco, the Netherlands, Norway, Oman, Poland, Portugal, Qatar, Romania, the Russian Federation, the Slovak Republic, Slovenia, Spain, Sweden, Switzerland, Tunisia, Turkey, the United Arab Emirates, and the United Kingdom. Interview topics included service provider assessments, trading practices, market trend analysis, and investor compensation.

The data reported in this document reflect solely the views reported to Greenwich Associates by the research participants. Interviewees may be asked about their use of and demand for financial products and services and about investment practices in relevant financial markets. Greenwich Associates compiles the data received, conducts statistical analysis and reviews for presentation purposes in order to produce the final results. Unless otherwise indicated, any opinions or market observations made are strictly our own.

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