Wall Street Gets Pushed Out of Bonds

The video discusses the rise of electronic trading platforms in the bond market, highlighting the shift from traditional bank-mediated trades to direct investor-to-investor transactions. It explores the challenges faced by the bond market due to its segmentation and the gradual adoption of electronic platforms. The discussion also covers the differences between trading Treasurys and corporate bonds, emphasizing the inevitability of electronic trading. Additionally, the video touches on the role of information and regulatory changes, such as the Dodd-Frank Act, in shaping the market landscape.

What is a significant change in the corporate bond market due to electronic trading platforms?

• Direct investor-to-investor trades

• Decrease in electronic trading

• Increased bank fees

• More segmented bond market

Why is electronic trading considered inevitable in the Treasury market?

• Treasurys have irregular trading volumes

• Corporate bonds are easier to trade

• Treasurys trade regularly and have high volumes

• Investors prefer traditional methods

What argument does Wall Street use to support traditional trading methods?

• Need for handholding and advice

• Lack of electronic platforms

• Higher fees in electronic trading

• Increased regulatory requirements

What percentage of corporate bond trades were done on the all-to-all platform in recent years?

• 3%

• 15%

• 27%

• 50%

What regulatory change has influenced the rise of electronic trading platforms?

• More segmented bond market

• Higher fees for electronic trades

• Dodd-Frank regulations reducing bank bond inventories

• Increased bank inventory in bonds