New EU rules boost electronic fixed income trading volumes - survey

LONDON, Jan 17 (Reuters) - Electronic trading volumes in fixed income have jumped since the introduction of European rules a year ago, research by Greenwich Associates has found, the latest sign that tough legislation is upending the way market participants trade.

Total average daily volumes of EU government bonds traded electronically in the first three quarters of last year rose by 36 percent to $57 billion, the report by Greenwich Associates based on a survey of fixed income investors said.

Credit volumes on electronic platforms jumped 39 percent to $4 billion over the same period, it found.

Market participants are using electronic platforms more because the European Union’s Markets in Financial Instruments Directive II (MiFID II), introduced in January 2018, made it more onerous to execute over the counter (OTC) trades, it said. (Reporting by Josephine Mason Editing by Alexander Smith)