A quiet summer has allowed dealer-to-client electronic trading levels in US rates to reach a yearly high, Coalition Greenwich suggests.<\/p>\n
Electronic trading dropped by just one percentage point year-on-year (YoY) across the dealer-to-client space in July, representing 63% of notional volumes \u2013 the highest figure recorded this year. Coalition Greenwich suggested that this could be linked to reduced volatility, which was down 11% YoY to 86.13, according to the MOVE index. This also marked a 13% decline over the last three months\u2019 average levels.<\/p>\n
Report authors Kevin McPartland, market structure and technology head of research at the firm, and Neha Jain commented, \u201cJuly\u2019s calmer market likely allowed investors to stick with their more-automated trading workflows, with less need to pick up the phone for block size or additional market colour.\u201d<\/p>\n
Overall US rates e-trading levels dipped over the month, falling four percentage points YoY to 55% of the total market. Dealer-to-dealer e-trading volumes maintained two-year lows of 49%.<\/p>\n
Average daily notional volumes were US$914 billion, up 6% YoY, but down 19% compared to averages over the last three months. This was the result of trading between dealers in on-the-run coupon bonds with 10-year or less durations, Coalition Greenwich stated.<\/p>\n
\u00a9Markets Media Europe 2025<\/p>\n