Fixed income trade automation and its use during turbulent market conditions

This meant that screen real estate for many if not all market participants has decreased and has driven them to seek new solutions in the current market conditions. These institutions have had to adapt and electronify processes across the board to adjust to new market and work environments. The standard gradual evolutionary adoption of automation has been replaced by a revolutionary adoption.  It’s clear that the benefits of automation are now being recognized by a greater number of market participants.

In general, automation works well if other conditions, such as dealer responsiveness and minimum slippage in the market remain constant, as the automated trading rules were configured during normal market conditions. After COVID-19, however, they have clearly changed.   As a result, firms that have not been adjusting the parameters of their rules engine to these new conditions have seen trade ratios decrease.

From a trading perspective, real estate on screens

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SEC Issues Agenda for Oct. 5 Meeting of the Fixed Income Market Structure Advisory Committee

[DATELINE]The Securities and Exchange Commission today released the agenda for the Oct. 5 meeting of the Fixed Income Market Structure Advisory Committee (FIMSAC). The meeting will focus on discussions regarding recent market volatility and the impact of COVID-19 on the corporate bond market, the bond fund and ETF market, the technology and e-trading market, and the municipal securities market. The committee will also consider a recommendation concerning the definition of electronic trading for regulatory purposes, and the meeting will include member observations of the fixed income markets and the Committee’s work. The Commission established the FIMSAC to provide advice and recommendations on fixed income market structure issues.

The meeting will be held by remote means and will be open to the public via webcast on the SEC’s website at www.sec.gov.

Members of the public who wish to provide their views on the matters to be considered by the FIMSAC may

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