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BondVision is pleased to report a continuation of the strong growth achieved in 2006 as first quarter volumes increased to a record €182 billion, up 28% from the fourth quarter. In addition, Bank of America joined BondVision in March as a dealer.
Domenico Crapanzano, Managing Director, Bank of America, said: “We are committed to providing the institutional investor community with trading solutions that meet clients’ needs. Joining BondVision allows us to provide our clients with an efficient solution for trading European bonds so we are delighted to join as one of their dealers.”
Furthermore, BondVision has witnessed continued growth of the business beyond euro government bonds. Trading of bonds issued by non-eurozone Sovereign Issuers and of bonds from Supranational, Agency and Covered Bond Issuers is growing significantly.
Volumes for Accession States’ bonds have seen more than 50% quarter-on-quarter growth. In addition, Société Générale became BondVision’s 14th market maker for these bonds, joining BNP Paribas, Calyon, Commerzbank, Deutsche Bank, Dresdner Kleinwort, Fortis Bank, ING, IXIS CIB, JPMorgan, Lehman Brothers, Merrill Lynch, UBM and UBS in providing prices for sovereign bonds. Currently bonds from Poland, Hungary and the Czech Republic have the most liquidity providers.
Amaury d’Orsay, Managing Director, Head of Liquid Bond Trading, Europe, Société Générale, said: "As investors’ confidence in electronic execution of Accession issuers bonds is growing, Société Générale is ready to commit liquidity to meet their needs.”
Additionally, BondVision’s segments for supranational, agency and covered bonds continue to grow and include 22 dealer liquidity providers, up from nine at the end of 2005. Bonds in this category represent approximately 20% of assets under management for European investors, who are becoming increasingly confident in their electronic trading. In turn, BondVision volumes for covered bonds and supranational/agencies grew 30% and 60%, respectively, in 2006 and this trend has continued in 2007.
Gianluca Garbi, Chairman of the Management Board, MTS S.p.A. said: “BondVision’s focus beyond the European government bond market reflects our underlying intention to provide investors with the broadest pool of available securities. European investors are committing an increasing amount of assets to these types of bonds and BondVision is pleased to be able to provide an efficient outlet to accommodate their trading strategies.”
BondVision offers the largest available pool of dealers with more than 30, as well as the largest number of securities with more than 2,000. More than 300 clients participate on BondVision with asset managers representing the largest class of institutional investor participants and central banks accounting for the second largest share of total volumes. The number of large-sized tickets, both outright and switch has also grown as clients have become more comfortable with electronic trading.
