Over 850 senior leaders in the fixed income industry gathered in Amsterdam on 8 and 9 November 2017 for the Fixed Income Leaders Summit Europe. Live polling during the event found that despite being less than two months away, 63 per cent of respondents are not ready for the January 3rd MiFID II deadline.
In the Oxford Style Debate on day one of the Summit, speakers from Citadel Securities, Euro TLX, FICC Markets Standards Board, International Capital Markets Association and EFAMA argued the impact of financial market regulation on the financial landscape. Before the session, 59 per cent of respondents disagreed that regulation has had a positive effect on the financial landscape. Following the debate there was a swing in sentiment with 54 per cent believing that regulation did actually have a positive effect.
When homing in on fixed income markets specifically, 75 per cent of respondents believe that regulation has been the biggest contributor to the evolution of the fixed income space over the past two years.
On the topic of fixed income platforms and technology, the overwhelming majority of respondents (95 per cent) stated that they are planning to partner with up to four new platforms and alternative technology solutions in the coming 12 months.
Comments from companies in attendance:
Christophe Roupie, Head of Europe and Asia at MarketAxess
“It’s clear from the discussions at the Fixed Income Leaders Summit that the market is seeking innovative solutions to tap into broad liquidity networks. The all-to-all Open Trading marketplace allows participants to reach the largest global network to trade credit efficiently. Following our recent decision to open an office in Amsterdam, it’s timely to be spending time with our clients at the event and hear directly from them how we can support their trading strategies.”
Julia Street, CEO at Streets Consulting Ltd.
“There was a clear message from the buy-side panellists that their investment in smart execution workflows and trading technologies has not been driven by regulation alone. It is very much part of their duty to deliver returns to their end investors.”
Enrico Bruni, Head of Europe and Asia at Tradeweb
“Massive regulatory change is occurring and Tradeweb stands ready to help. Tradeweb’s European business has been regulated by the UK’s FCA since its launch in 2000, and we have operated an MTF for nearly a decade. Plus, we have the experience from our leading SEF platform following the introduction of the US DTO obligation. We are therefore strongly positioned to support clients in their adjustment under MiFID II.”
Alun Cutler, Director Product Management, EMEA at Charles River Development
“Whilst the buy-side is facing significant challenges complying with MiFID II obligations by January, Charles River’s clientele is well positioned. Charles River has spent over two years building an overarching solution that support MiFID II’s Trade and Transaction Reporting, Commission Management and Best Execution mandates.”
This year over 350 buy side heads of fixed income trading attended the Summit in Amsterdam discussing a range of topics including MiFID II and what comes after January 2018, new trading strategies and the latest technology developments.