The credit market has seen a major shift towards issuance and trading in Euro denominated Credit Products over the past two years. In 2000, the Euro denominated Eurobond market grew 33 percent, with total outstandings of EUR 1.8 trillion. Average daily turnover is approximately EUR 20 billion, with the bulk of this being conducted as a spread trade with an underlying government bond.
Rustam Lam, Managing Director, Instinet Fixed Income Europe said, "The introduction of Credit Products onto the Instinet platform is another exciting addition to our existing product range and continues to broaden the scale of our brokerage service. We planned to enter the Eurobond market before the year end and we are delighted to be able to make this announcement ahead of schedule. Traders value the access to real liquidity that Instinet provides. Over the past year, our volumes have doubled in the Euro government bond market and we expect this to continue."
Instinet will initially provide a service in thirteen liquid Agency and Supranational Euro denominated issues. These bonds can be traded as outright cash instruments, or as part of a spread trade on the platform. Instinet will continue to expand this list in close collaboration with its clients.
Lam continued, "The complete anonymity and unique functionality of the Instinet platform allows our brokers to add value to every trade, by seeking out the best bid and offer available. In the credit market this capability is essential for traders who want real liquidity and execution performance to be provided by their broker."
In addition to Euro denominated Credit Products, Instinet provides a brokerage service in Euro denominated sovereign debt and Jumbo Pfandbriefe and in the US through Instinet Fixed Income Inc., with functionality enabling cash, spread and basis trading in over 550 fixed income instruments in Europe.
