24 Jan

The Importance of Connectivity in Fixed Income

Terry Flanagan has written an article for Markets Media in which he highlights the issue that the largest OMS providers tend to be slow to add new trading venues. This, of course, often results in the buy-side not using a new venue simply because it isn't supported by their OMS provider.

Terry reported from TABB Fixed Income 2018 in New York where the Connectivity & Liquidity panelists raised this issue - one that potentially stifles innovation in the Fixed Income market.

"So a startup or emerging platform with a new trading model that can potentially add value for the buy side and improve market structure may have its growth delayed or stunted — not on its own shortcomings, but rather due the vagaries of the OMS selection process."

"For Liquidity Edge, a Treasury trading platform launched in 2015, it has taken more than a year in some instances to get onto an OMS for post-trade processing," according to Nichola Hunter, COO of Liquidity Edge.

Connectivity is still a major problem in Fixed Income, and that's exactly what we set out to solve when we first started TransFICC.

A great article. I have only picked up on a few of the observations - read it at