Carl James became a trader when he was 19, in the boisterous telephone dealing rooms of the 1990s.
The change has accelerated since new European Union rules in 2018 made it more cumbersome to carry out trades over-the-counter, they said. Electronic platforms make the required time stamping and data reporting easier. Four in every five trades at Pictet, which manages around $200 billion, are now placed electronically - tapped into a machine aggregating prices and analysing data from dozens of banks and trading venues.Eventually, “the relationship won’t matter at all,” he said.He has hired a data expert and the coding trading should help the traders to better understand the new technology they are using.
Analytics firm Coalition estimates the 12 biggest investment banks employed 1,400 fixed income sales and trading staff at end-2018, down from 2,300 in 2010 and with a year-on-year fall in each of the past eight years. The shift has also impacted investment banks. Fixed income revenue is down at the top twelve, due in part to the shift to electronic trading. They earned $5.4 billion in 2018, down from $6.3 billion in 2016 and $9.1 billion in 2010, Coalition data shows.
Wicks says the buying and selling of corporate debt is now done in seconds whereas before it took hours.Three-quarters of the fixed income trades by ticket on his desk are now made electronically. He also expects 15-20% of his bond book to be automated - that means trades selected and executed by computers - this year, from less than 10% today.
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