Muni trading market trends
- Q225 saw record muni trading volume, up 23% YOY [thank you Coalition Greenwich]
- Small trades are increasingly getting done electronically, but muni trading is still 80+% voice by notional…high-touch, relationship-based trading is here to stay
- Proliferation of SMAs is forcing the need for efficiency of the whole investment process, not just trade execution
- Multi-asset thinking is driving protocol adoption across munis and other FI asset classes, like portfolio/basket trading, all-to-all, and order books
- Some central trading desks trade munis, but most PMs still do their own execution
Which leads to 4 observations about muni tech
- Munis are not corporates…the market works differently so its tech needs to work differently
- Criteria-based, opportunistic trading doesn’t translate well to OMS’ “order-in-hand” workflows
- A “munis-only” solution isn’t enough for cross-asset managers
- A corporate bond e-trading EMS is not the same thing as a fixed income EMS
Why Adroit
- Trade like you want to: order-in-hand and opportunistic, criteria and CUSIP-based, voice and e, secondary and new issue, hedged and unhedged, high-tough and no-touch
- Ergonomics that actually make sense for munis, driven by muni PM/trader feedback
- Access all dealers, trading venues and execution protocols – and leverage all your data sources – without leaving Adroit screens
- Data and trading APIs help you to truly automate the parts of the processes you want to automate
- “Best Overall EMS – Fixed Income” per ChartisResearch (and watch this space for the next award)
Why now
- OMS workflows don’t work for munis, no matter how much you pay for your OMS
- Adroit’s built-for-purpose fixed income EMS costs a fraction of designing, building and maintaining in-house
- We connect with all major OMSs, muni-focused PMSs, and Bloomberg, for rapid delivery
- You’re busier than ever…trading doesn’t have to be this hard
- Got FOMO? 2 of the 5 largest (and savviest) muni investors rely on Adroit to bring out the best of their muni businesses
Adroit has balanced muni market microstructure with a truly cross-asset solution, for everything trading and trading adjacent. See how we’re different, and how we can help you to scale.