Buy-Side Adoption of Electronic Trading in U.S. Treasury Securities

At the end of 2018, 58% of U.S. Treasury bonds were transacted electronically.

Boston, October 17, 2019 – The U.S. Treasury securities market is the largest and most liquid in the world, but only 58% of transactions are facilitated by electronic venues or methods—well behind other asset classes. While the majority of interdealer trading is done electronically, the evolution of electronic buy-side trading has lagged. As electronic trading becomes an inevitability, buy-side institutions and their dealers must understand the steps that lead investors from voice trading to fully automated transactions.

This report quantifies the degree of electronic trading in U.S. Treasury securities borne by buy-side institutions. It is based on an online survey that Aite Group distributed from May 2019 to July 2019, in partnership with The TRADE magazine, to 28 buy-side institutions to gain insight on the adoption of electronic trading of U.S. Treasury bonds.

This 29-page Impact Report contains 25 figures and one table. Clients of Aite Group’s Institutional Securities & Investments service can download this report, the corresponding charts, and the Executive Impact Deck.

This report mentions Bloomberg, BrokerTec, CME, Fenics UST, LiquidityEdge, MarketAxess, OpenDoor, and Tradeweb.

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