Organization and transparency of fixed income markets
This chapter describes the organization and conduct of fixed income markets. The over-the-counter market structure, which dominates the fixed income markets, is explained. The role of primary dealers, interdealer brokers, and other intermediaries are described. The concept of pretrade and post-trade transparency are presented. The coexistence of voice-based trading and electronic (anonymous) trading is explained. We also compare the transparency of secondary markets in various sectors of the fixed income markets and describe some recent developments in this area.
Fixed income markets are organized as over-the-counter (OTC) markets in the United States, ...