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Why Humans Will Always Play a Role in Fixed Income Trading

As digitization and automation become more commonplace amongst traders, there’s a lot of talk about the rise of electronification within the fixed income market. And while it’s true that electronification in fixed income is on the rise, there will never be – at least not in our lifetime – a fully automated fixed income trading market. Quite simply, the deals are too complex, too large, and at times, too illiquid to be managed by even the most intelligent trading software.

Fixed income is a unique beast, and as such, it will always require at least some element of human-to-human interaction. New technologies and new workflows are continuously being developed, and there is absolutely room for further automation within this market. However, unlike other asset classes, new technologies being developed for fixed income trading must be done in way that supports, rather than replaces, the human-to-human interactions which make this asset class so unique.

Click here to read the full article by Bruce Boytim, COO of Broadway, in Traders Magazine.