STREAMED DEALER PRICES.
Streaming prices from dealers provide a key perspective on the market, but unless they are executable they have limited value for trading. In our research they are far less popular to be traded against than they are as a pre-trade source for pricing and liquidity data.
In part they are used as a prep for trading on other platforms – when they are traded against it is often following a request for a firm price, or as a route to making a bilateral connection.
Although 20% of those who use streamed prices to execute against directly, that is only 2% of the traders surveyed.
Banks are rolling out executable streamed prices to favoured buy-side clients, as are electronic market makers, but this represents a fraction of executed trades today.
©The DESK 2020
