Solving the Corporate Bond Liquidity Puzzle
Regulatory pressure continues to drive down sell-side market making in the corporate bond market, creating a liquidity crisis for the buy side. While a number of players have been working on platforms to help solve the liquidity puzzle, Sassan Danesh, managing partner, Etrading Software, says the fundamental issue is one of market structure, not technology. Speaking with TabbFORUM's Les Kovach, Danesh describes a market architecture that aggregates all of the liquidity pools across the marketplace while avoiding information leakage, and why the industry hasn't moved in this direction already.