The Most Significant Challenges Facing Fixed Income Traders Today

The most critical challenges in fixed income trading are the need for accurate sources of bond prices, aggregation of fragmented data, and modeling to get a deeper look at illiquidity across locations and different input sources.

Currently, reliable data on accurate bond pricing and construction of credit curves are lacking.

Traders often have access to only a tiny amount of data. The bond market relies profoundly on segregated data allocated among contracting parties, creating fragmented data sets that do not cover most of the over-the-counter (OTC) flows.

In addition, FINRA Trace and other out-of-market regulatory over-the-counter regulators denominated in US dollars suffer from reporting delays.

Insolvency makes it harder to trade bonds. Most of the existing fixed income data sources do not have enough coverage to provide traders with a view to real liquidity.

Traders require accurate ISIN / CUSIP bond prices and liquidity levels to measure the liquidity of individual securities and enable automatic execution.

Confidential data is the lifeblood of the fixed income trading bureau. Traders also need the right tools to make sense of the vast amount of information coming in to make sound decisions with accuracy, speed, and precision.

So, to conclude, you need the right tool or platform to make smart trading decisions. You need to bring transparency, predictability, and accuracy to your trading game, resulting in more profit more frequently.

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