Covid-19 Disrupts Innovation in US Treasuries Market
The pandemic has caused setbacks in electronification and streaming in the US government bonds market.
Electronic trading in US Treasuries has grown steadily over the last decade, with over 60% traded on electronic venues in 2019, but since March, markets have witnessed unprecedented disruption and the Covid-19 outbreak has curtailed innovation, market participants say. As firms have cut spending amid the economic fallout from the pandemic, there has been a lull in the adoption of new execution offerings.
“A large part of it is down to the market conditions, and remote working isn’t really that
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