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Barclay Survey Reveals More Than 60% of Fixed Income Investors Don’t Use an EMS

Over 60% of fixed income institutional investors do not currently use an execution management system (EMS), a survey from Barclays has revealed, suggesting firms still heavily rely on their bilateral banking relationships. The investment bank’s global fixed income market structure research, which surveyed 130 institutions including central banks, asset managers, insurance companies and hedge funds, also found that less than half are looking to implement an EMS by the end of this year. According to a story in The TRADE news, Barclays said that while an EMS can potentially automate the whole lifecycle of a trade, from pre-programmed trading to settlement, less than 25% of investors’ flow is executed using automation. Respondents indicated in the survey they have experienced pricing fragmentation across different platforms for the same instrument in both credit and rates. In the Americas, almost 90% of investors said they had experienced pricing fragmentation across platforms in rates, compared to 37% of investors based in EMEA. Senior buy-side traders have argued in the past than an EMS in fixed income is not a key requirement given the nature of the market, while others believe the system can provide a tool for evidencing best execution and aggregating data.

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