- 11% of trading volume by par amount is executed electronically
- $4 trillion market is still ripe for automation, analyst says
Municipal bonds are being left behind as other fixed-income sectors move to electronic trading.
Only about 11% of muni bond trading volume was executed electronically in May, a share that hasn’t moved in the past three years, according to an estimate last month from Coalition Greenwich, a financial services industry analytics firm.
By contrast, investment-grade corporate bond e-trading has more than doubled since May 2018 to 41% and more than tripled for high-yield bonds to 28%. Two-thirds of the US Treasury market traded electronically in May 2022.
Bloomberg Markets
By Martin Z Braun
July 12, 2022