Jane Street and Citadel Securities Race Deeper Into Bond Markets

  • 📰 BNNBloomberg
  • ⏱ Reading Time:
  • 104 sec. here
  • 3 min. at publisher
  • 📊 Quality Score:
  • News: 45%
  • Publisher: 50%

Finance Finance Headlines News

Finance Finance Latest News,Finance Finance Headlines

After conquering stocks, electronic market makers are finally gaining ground in fixed income.

Palantir beats sales estimates, raises outlook on AI enthusiasmCash-Stretched New Homebuyers Are Drawing a Line at Fixer-UppersUS Regulators Propose More Power to Claw Back Banker BonusesBlackRock Cuts Jobs in Muni Business Under New LeadershipBoeing Faces FAA Probe of 787 Dreamliner Inspections, RecordsUS Pandemic Savings Have Finally Been Spent, SF Fed Study SaysFirst Quantum to Seek Talks With Panama’s Mulino on Closed MinePetrobras Waits on Offers From Braskem’s Other Suitors, CEO SaysFed’s...

Citadel Securities says the number of institutional clients using its fixed-income services has jumped more than 15% since it started making markets in investment grade corporate bonds last year. Already one of the top dealers for Treasuries, the sibling to Ken Griffin’s hedge fund will soon launch into European and UK government debt. It also plans to begin portfolio trading — a red-hot technique for moving big baskets of securities in one swoop — before entering high-yield credit.

Jane Street estimates in its debt document that the percentage of investment-grade bonds traded electronically in the US jumped to 42% in 2023 from 34% two years earlier. In high-yield debt it was 31%, up from 25%. Coalition Greenwich says 64% of US Treasury trades were handled electronically in 2023, up from 45% before the pandemic struck.

The same tools also help them “internalize” more activity — fill orders from their own inventory — which can reduce a transaction’s discernible impact on the market. That’s a big draw to asset managers who want to offload or establish positions without creating a stir. That chimes with what other asset managers say. Legal & General Investment Management Ltd. sees alternative liquidity providers becoming increasingly relevant for risk-transfer activities. Swiss money manager Syz Group said it’s routing double the amount of fixed-income trades through alternative liquidity providers compared to three years ago.

Virtu, another well-established ETF market maker, is also in the top 10 for investment-grade trades at MarketAxess. Having launched its corporate credit operation in 2022, it now executes more than 1,000 trades a day on the major electronic platforms. Year-to-date activity is currently about double a year ago, the firm said.

For many transactions, tech-powered challengers still depend on banks for help with services such as custody, clearing and settlement. That means new players are often among the top clients of a bank’s prime brokerage, even as they cause pain for its trading desk.

 

Thank you for your comment. Your comment will be published after being reviewed.
Please try again later.
We have summarized this news so that you can read it quickly. If you are interested in the news, you can read the full text here. Read more:

 /  🏆 83. in FİNANCE

Finance Finance Latest News, Finance Finance Headlines

Similar News:You can also read news stories similar to this one that we have collected from other news sources.

Jane Street’s $1 Billion Trade Puts Spotlight on Indian OptionsThe courtroom drama over an Indian options strategy that allegedly made $1 billion for Jane Street Group is drawing fresh attention to one of the world’s fastest-growing derivatives markets.
Source: BNNBloomberg - 🏆 83. / 50 Read more »

Jane Street Strategy in Millennium Suit Involved India Trading, Hearing Reveals(Bloomberg) -- The allegedly secret trading strategy over which Jane Street Group is suing two former traders and Millennium Management involves options...
Source: YahooFinanceCA - 🏆 47. / 63 Read more »

Jane Street Strategy in Millennium Suit Involved India Trading, Hearing RevealsThe allegedly secret trading strategy over which Jane Street Group is suing two former traders and Millennium Management involves options trading in India, lawyers inadvertently revealed at a court hearing.
Source: BNNBloomberg - 🏆 83. / 50 Read more »