Credit Market Awaits Automation

andrew-challis
Andrew Challis, Barclays Capital

Broach the subject of the introduction of algorithmic trading within the credit market with traders and you’re likely to get, at best, a lukewarm response. After all, credit—the largest market in the global financial services industry—has always been behind the adoption curve when it comes to trade automation compared to other markets such as equities, foreign exchange (FX), listed derivatives, and futures.

John Jay, senior analyst at industry research firm Aite Group, says algorithmic trading

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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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