In the first half of 2025, a significant milestone was reached in trading volumes for corporate and municipal bonds on a major electronic execution platform. The platform reported record notional trading volumes of $120 billion for corporate bonds and $109 billion for municipal bonds, reflecting increases of 20% and 35% respectively compared to the same period in the prior year.
This surge in activity highlights a continuing trend, with the last four years demonstrating consistent growth in both corporate and municipal bond markets. Factors contributing to this growth include enhancements in platform functionality and the expansion of a customer network that includes institutional and wealth management clients.
A noteworthy development during this period was the introduction of a hybrid trading mechanism— the first spread-based click-to-trade order on this platform. This innovation combines the pricing methodology commonly used by institutional investors with the accessibility of click-to-trade functionality favored by retail investors. It aims to provide market participants with the benefits of both ease of access and improved risk management features, allowing trades at prices related to Treasury spreads.
The platform’s offerings are designed to support a diverse range of trading protocols, including click-to-trade, sweeps, auctions, and request-for-quote (RFQ) systems. Recently, a new RFQ protocol specifically for Mortgage-Backed Securities (MBS) was launched, complementing existing features and facilitating client access to an anonymous trading pool for MBS.
In terms of technological advancements, the platform leverages evaluated pricing and analytics to enhance transparency and streamline workflows throughout pre-trade, trade, and post-trade processes. It promotes execution efficiency by enabling both anonymous and disclosed counterparty interactions, catering to trades of all sizes—from small odd lots to large block trades across various types of fixed income securities, including Corporates, Municipals, Agencies, Treasuries, and Certificates of Deposit.
Overall, the remarkable trading volumes during this period underscore a robust demand in the fixed income market and demonstrate the effectiveness of ongoing innovations in trading technology and strategies.