The inevitability of consolidation
All the online bond trading platforms that are likely to emerge have already been announced. That already seems to be too many. One merger has already taken place and others will probably follow soon.
It took a while for the internet to have any significant impact on wholesale financial markets. While the rest of the global economy was busy diving into the dot com pool, the largest financial institutions, especially their fixed-income departments, were cooling their heels, not wanting to commit themselves too early to the so-called new economy.
But last year the leading bond market firms finally dived in. All the big players have stakes in a wide variety of platforms, seeking to ensure a presence as the winners and losers sort themselves out.