Tag: Coalition Greenwich

Algo sales and desk coverage headcounts expected to be expanded the most in the next 12-18 months, according to a report from Coalition Greenwich.

Research found that nearly half of buy-side respondents want separate coverage relationships with their brokers’ high- and low-touch desks.

With trading volumes for US corporate bonds up 34% year-on-year, the only feasible way to meet this demand is to price and quote bonds faster than a human could via point-and-click, finds Coalition Greenwich report.

The aggregation of all the data necessary for managing the risk of firms’ portfolios was highlighted as the top challenge among risk professionals.

“Factors including cost and quantifiable return on investment (ROI) still hinder traders who are considering the adoption of new trading technology,” however sentiment towards e-trading is increasingly positive, says Coalition Greenwich.

Across both the UK and Europe, managers are giving their top algorithmic broker almost 30% of their electronic order flow, according to Coalition Greenwich’s research.

Despite a brief uptick in high-touch trading, e-trading strategies are seeing increased usage - 32% in 2023 compared to 28% in 2021 - with this expected to continue to rise in the next three years.

Over a third (37%) of total 2023 volumes were executed through algorithms and/or smart order routers, with this figure expected to reach 40% in the next three years, a Coalition Greenwich report has found.

Last year saw the largest increase in technology investment from corporate and investment banks, up 5.4% year on year according to Coalition Greenwich.

T+1 was among the key trends identified by Coalition Greenwich in its latest report examining what the most impactful market structure themes will be over the next 12 months.