If your a participant in the fixed income market, then your accustom to the phrase that fixed income technology is 10 years behind the equity market. But why?

  • Some of the best minds in finance work in the fixed income market and the term masters of the universe didn't come out of thin air.

  • The market has proprietary models that run trading strategies based on the work of noble prize winners.

  • A complex network of primary dealers and regional dealers supply governments, government agencies, corporations and municipalities with financing on a daily basis.

  • The amount outstanding in the debt markets dwarfs the equity markets.

 

CatFIX's simple answer is the root of The Problem:

The complexity of the fixed income market causes a lack of standardization between content creators, content distribution channels and the audience digesting the content.
The complexity and lack of standardization create a canyon sized knowledge gap between the fixed income front office and FIX protocol developers.