In their new report, “The Technology to Succeed in Fixed-Income Trading,” they write that global and regional bond dealers that made the biggest IT investments over the past decade have also achieved the highest levels of market share growth.
Before stepping into an interview for a front office tech job, you might want to know exactly what the trading systems do. In this respect, a new report from Greenwich Associates is helpful.
While technology has revolutionized government bond trading, McPartland notes that “it will not completely replace the human touch.”
The nation's top six government bond dealers are spending nearly $25 billion on technology this year, the research firm said in an Oct. 3 report written by Kevin McPartland.
According to Greenwich Associates, the top six US government bond dealers have an astonishing aggregate annual technology budget of $26 billion.
According to a study of more than 180 institutional investors by Greenwich Associates, guidelines restricting non-users from investing in equity ETFs dropped from 20% in 2015 to 9% last year.
“What’s novel about that is there’s no New York Stock Exchange or Nasdaq in the middle, setting rules,” said Richard Johnson. “That’s cool, we haven’t seen that before.”
“Managers are on the defensive here that this [ESG latent demand] could be a trend coming quickly that they are not prepared for,” says Andrew McCollum, at Greenwich Associates.
According to Richard Johnson of Greenwich Associates, people starting out in finance can prepare for these changes. “Be tech-savvy, be client-savvy or be data-savvy,” Johnson told Bloomberg.
“It’s a very targeted audience,” said David Stryker, Greenwich Associates. “For the dealers that are involved, it’s a targeted hand-to-hand combat approach to finding each investor.”
