Putting Humpty Dumpy Together Again: Dealing with Fragmentation and Liquidity Management

When it comes to fragmented liquidity, the industry is trying to get all that liquidity and put it back into a central place. It is obvious at the basic level how you do that: put the primary exchanges and multi-lateral trading facilities (MTFs) together in a "super book." Then you figure out where you need to send your orders and you whack them out. It is fairly simple to do and there is room for more intelligence. It's certainly an area we monitor from an empirical and post-trade perspective.

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Systematic tools gain favor in fixed income

Automation is enabling systematic strategies in fixed income that were previously reserved for equities trading. The tech gap between the two may be closing, but differences remain.

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