Will Rhode, Tabb Forum, Three Ways to Skin a Swap Future, here.
You can’t migrate interest rate swaps onto a futures market without creating product variations, says Brendan Bradley, chief innovation officer at Eurex, which is conducting research on launching its own deliverable swap future product. Various market participants, he explains, will seek different product characteristics based on their overall portfolio strategies. Bradley and TABB Group director of fixed income research Will Rhode examine the various methods of constructing swap futures, the types of investors that will benefit from each, and the global prospects for swap futures.
Tracy Alloway and Michael Mackenzie, 22 Sep, FT, Goldman Sachs revamps bond-trading platform, here.
People familiar with the effort say that Goldman may be attempting to establish a prototype for an eventual multi-dealer platform that would include more than one bank.
Goldman declined to comment.
Goldman has already been trying to recruit other dealers to GSessions but not enough have accepted its overtures, highlighting the difficulty that hyper-competitive banks often face when trying to work together. Despite declining revenues from bond trading in recent years, the profits that banks make from matching buyers with sellers in the opaque world of bond trading are still a significant portion of their revenues.
Meanwhile, big bond investors may be angling to come up with their own solution. BlackRock, the world’s largest asset manager, has teamed with MarketAxess to develop further its own bond trading platform, for instance.