AFME: European Market Liquidity conference

The Association for Financial Markets in Europe (AFME) are holding their 8th annual European Market Liquidity Conference in London this Wednesday.

It’s an excellent networking event with great speakers and topics (see here for our comments on last year’s conference) ,which this year include:

  • What FI trading models will predominate in the new landscape?
  • FX Business models post G20- impact on cleared/uncleared business?
  • How is the market responding in practice to proposed OTC derivatives reform?
  • The FX market of tomorrow?
  • All Change in the World of FICC?

The full program here.

To coincide with the conference,  AFME has also released an Investor survey of fixed income liquidity (not sure if this replaces the AFME market liquidity FI surveys, which were designed to be a benchmark study for the industry showing buy-side, sell-side and vendors expectations in fixed income etrading and liquidity, previous survey’s here).

The survey (sponsored by Bloomberg) is worth a quick read, although not much we didn’t already know, or hadn’t heard before.

Highlights here:

  • Pre-Trade transparency requirements have a negative impact on liquidity
  • Migration from voice to electronic trading, is taking place at a considerably slower pace than is often described in the press.
  • Buy-side respondents overall believe that both electronic and voice execution are important to maintain liquidity.
  • Some 23% of smaller firms (as defined by assets under management <€5m) expressed their preference for voice execution only.
  • Price transparency and speed of execution were the primary reasons when opting  to trade electronically.
  • Ticket size and liquidity were the primary reasons to trade by voice.

Full survey available here: Investor survey of fixed income liquidity

2 Responses

  1. […] Unsurprisingly, regulatory impact, market readiness and new business models tended to dominate last week’s AFME conference. […]

  2. […] (see here for our comments on last year’s conference). […]

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