Shining a light on fixed income

Traditionally, fixed income as an asset class has presented market participants with several challenges, due to the over-the-counter (OTC) model by which the bulk of securities are traded. Observable market data, especially for infrequently or thinly traded instruments, is sparse or even completely absent, which impacts firms’ abilities to accurately price/value such instruments, while gauging market depth (liquidity) is similarly challenging. However, a number of initiatives are currently under way that will shine a light on the global fixed income markets and, in doing so, provide participants with greater transparency and granularity to support their pricing and liquidity functions.

Key discussion points:

• The challenges facing market participants when it comes to trading OTC fixed income securities
• What ‘transparency’ means to market participants, and how market infrastructure and data providers can help increase transparency in the fixed income markets
• The business and operational benefits on the back of increased transparency in the fixed income markets.

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