Monday, November 20, 2017 Stamford, CT USA — After years of post-crisis tumult, Europe’s fixed-income business is finally showing signs of stability. However, because that stability has arrived just ahead of the potentially disruptive start of MiFID II and a possible shift in the credit cycle, it could prove short-lived.
J.P. Morgan, Barclays and Citi retained their positions as the top three dealers of European fixed income in 2017, and also increased their combined market share by 2.1%. Goldman Sachs now ranks fourth, followed by HSBC, BNP Paribas and Bank of America Merrill Lynch, which are statistically tied in terms of market share. These firms are the 2017 Greenwich Share Leaders in Overall European Fixed-Income Market Share.
J.P. Morgan and Barclays head up the list of Greenwich Share Leaders in European Rates products, followed by Citi. Citi joins J.P. Morgan at the top of the list in Credit products, followed by Barclays.
“There was less volatility in the competitive landscape this year,” says Greenwich Associates consultant Satnam Sohal. “There were no upheavals among the major dealers and investors were less active in shifting wallet among dealers.”
Electronic Trading
Whether due to low levels of market volatility and trading activity, or the approach of some natural limit, growth has stalled in European fixed-income electronic trading, and volumes have hit a plateau. When they do trade electronically, investors gravitate to the market’s biggest dealers. J.P. Morgan, Citi and Barclays are the 2017 Greenwich Leaders in European Fixed-Income E-Trading Market Penetration in Rates and Credit product categories. “Despite any pause in e-trading growth overall, market participants of all types are investing heavily in algorithmic pricing, which will eventually become a powerful force in fixed-income,” says Greenwich Associates consultant Tom Jacques.
Greenwich Quality Leaders
Across the board, J.P. Morgan is the market leader in service quality, claiming the title of 2017 Greenwich Quality Leader in Overall Fixed-Income Service, Sales, Research, Trading, and Rates and Credit products.