Intercontinental Exchange has added new functionality to ICE ETF Hub, supporting US-listed fixed income exchange traded funds (ETFs). Since launching last week, fixed income primary trades for 17 funds have passed through the system - including iShares Core U.S. Aggregate Bond ETF (AGG) and iShares iBoxx $ Investment Grade Corporate Bond ETF (LQD).
As a major step forward for DLT in Capital Markets, Deutsche Börse and HQLAX have successfully launched their DLT solution for collateral swaps in the securities lending market. The first live transactions were executed by Commerzbank, Credit Suisse and UBS on the Eurex Repo F7-trading system.
A guest post from Nikolay Zvezdin explains a new product model, the Tranched Value Security.
The Fixed Income and Derivatives market is in the midst of fundamental change, as trading migrates away from the phone and onto electronic venues. This move to e-trading has been triggered by the need to capture accurate data and report it to the regulators, combined with the need for liquidity, and the ongoing demand for efficiency gains in the middle- and back-office.
Driven by regulation and a need to demonstrate best execution, Fixed Income trading continues to evolve, becoming increasingly electronic. Whilst this benefits the market in terms of increased access and market transparency, it has also resulted in the industry-wide problem of fragmentation.