Pink Iguana

Home » Market Structure » SEF Misery

SEF Misery


Christopher Whittall, IFR, SEF shift compounds fixed-income misery, here.

The structural headwinds to fixed income have continued to mount this year, with the US swaps market beginning its momentous transition to exchange-trading through swap execution facilities in mid-February, causing a further dent in already depressed trading volumes.

Anaemic fixed-income activity is an ominous sign for banks, especially as their returns are heavily skewed towards the first quarter, with some executives predicting that more banks will be forced to scale back trading desks before the year is out to reflect the dwindling pool of returns.


Leave a Reply

Fill in your details below or click an icon to log in: Logo

You are commenting using your account. Log Out /  Change )

Google+ photo

You are commenting using your Google+ account. Log Out /  Change )

Twitter picture

You are commenting using your Twitter account. Log Out /  Change )

Facebook photo

You are commenting using your Facebook account. Log Out /  Change )


Connecting to %s

%d bloggers like this: