Technology in European Fixed Income: Time to Open Pandora’s Box

by Joséphine de Chazournes, November 30, 2012
Industry Trends
EMEA, North America

Abstract

The fixed income market is changing, mainly because of the economic crisis that Europe is facing, the uncertainty surrounding the euro, and the instability of the global financial system. Globally, a myriad of regulations has been and is still being drafted in an attempt to provide more stability, security, and transparency.

Regulations will have a tremendous impact on banks, dealers, brokers, and investors, all of which will have to adapt to a changing environment with the support and products that software vendors will provide them. In the report Technology in European Fixed Income: Time to Open Pandora’s Box, Celent examines the disruptive technology solutions that some market players, external vendors, and in-house developers are coming up with to solve issues within the European fixed income market.

 

“We don’t believe there is a magic lamp that will solve the issues the buy and sell side are facing,” says Joséphine de Chazournes, Senior Analyst with Celent’s Securities and Investments Group and author of the report. “However, it is now time to open Pandora’s box for many market players, who will have to find a way to make various solutions fit together.”

This report examines vendors’ various technology solutions to help address the issues market players face.

This 22-page report contains five figures and four tables.

Celent is a research and advisory firm dedicated to helping financial institutions formulate comprehensive business and technology strategies. Celent publishes reports identifying trends and best practices in financial services technology and conducts consulting engagements for financial institutions looking to use technology to enhance existing business processes or launch new business strategies. With a team of internationally based analysts, Celent is uniquely positioned to offer strategic advice and market insights on a global basis. Celent is a member of the Oliver Wyman Group, which is part of Marsh & McLennan Companies [NYSE: MMC].

Media Contacts

North America (Boston)
Tylor Tourville
ttourville@celent.com
Tel.: +1 617 424 3284

Europe (London)
Chris Williams
cwilliams@celent.com
Tel: +44 (0)208 870 7875

Asia (Tokyo)
Yumi Nagaoka
ynagaoka@celent.com
Tel.: +81.3.3500.3023

Table of Contents

Executive Summary

1

Introduction

3

Liquidity Enhancements for Improved Trading

4

 

Retail and Odd-Lot Solutions

4

 

Institutional and Dealer Solutions

8

 

Balance Sheet Optimization in a Basel III Environment

13

Data Technology

15

 

Book Data Feeds

15

 

Reference Data

16

 

Price Algorithms

16

 

Fixed Income Analytics

17

Conclusion

19

Leveraging Celent’s Expertise

21

 

Support for Financial Institutions

21

 

Support for Vendors

21

Related Celent Research

22

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