Human capital imperative to future of bond trading

Ensuring bond trading desks have the right skill sets with diverse perspectives is more important than ever despite the recent reductions in headcount across the fixed income industry.

Human capital is more important than ever for the future of the bond trading desk, despite multiple headcount reductions across the industry, according to panellists at the Fixed Income Leaders Summit.

Ensuring trading desks have people in the right roles with a multitude of skill sets providing different perspectives is thought to be imperative when dealing in a fragmented market place.

Irina Isaakova, vice president at TD Asset Management stressed the importance of human capital to delegates at the event in Boston this week.

She said: “I need to make sure I have the right people, with the right skill sets in the right roles – I am also a strong believer in specialisation.”

John Adam, global head of product strategy at Portware echoed Isaakova’s thoughts, explaining to delegates that with the problems facing the bond markets, particularly in terms of data, human capital is an important asset.

Adam said: “If you can be different in your thinking, you will find yourself with huge opportunities. Having a diverse team with a different perspectives means you can act immediately taking into account everyone’s view on the team.”

He also made the point that the implementation of technology does not mean a reduction in headcount will follow.

“There are misconceptions that implementing technology will lead to a reduction in traders, but it automates the lower level tasks so the individual can focus on those important decisions around risk.”

Frank Cerveney, head of markets at MTS added: “I totally agree – it’s about empowering the individual.”

MTS BondsPro announced it is connecting to Bloomberg’s TSOX as the bond industry moves towards greater connectivity to improve the bond network for liquidity.