Question: Can you describe SDP and MDP platform for Fixed Income market?
Answer: SDPs are proprietary trading systems offered by a single dealer to its clients. MDPs reduced search costs by allowing end investors to request quotes to trade from a number of dealers simultaneously. MDPs also has additional features such as automated record-keeping, making it easier to audit.
Question: Can you describe RFQ (Request for Quote) in fixed income market?
Answer: In the request for quote (RFQ) trading protocol, participants can query platform market-makers and request prices on an order of a particular size. RFQ systems can vary based on - Whether quote requester or quote receiver reveals its identity - Sign of the order (buy or sell) is revealed - How many and what kind of participants may receive RFQs - Whether the quotes are executable or indicative. - In many fixed income RFQ systems, participants query only dealers and only in limited numbers.
Question: Can you give example of RFQ based of the system in Fixed Income market?
Answer: Below are the one well known - Tradeweb, which is owned by Thomson Reuters. - BondVision: Bloomberg
Question: Please let us know various short name used in Fixed Income electronic trading?
Answer: Few of them we know are - AT : Automated Trading - CLOB: Central Limit Order Book - CTT: Click to trade - ECN: Electronic Communication Network - ET: Electronic Trading - HFT: High Frequency Trading - MDP: Multi-Dealer Platform - RFS: Request for Quote - SDP: Single Dealer Platform - PTFs: Principal trading Firm