Need to Know: Bond pricing
In this episode of Need to Know, our series covering the topics and issues influencing markets and the global conversation, Bloomberg’s Robert Simek unpacks how the rise in automated trading is generating more data — and with it, more timely pricing.
“Technology is pushing the boundaries in the bond market, just like it is in all markets, in all industries,” he explains. “So what we see is what we like to call a data flywheel. So as trading becomes more automated, more electronic, it’s generating more data. That data is then generating higher-quality pricing, more accurate pricing, more timely pricing, and that leads to more trading. So you have this ecosystem of data that’s being generated.”