Transforming Fixed Income: How Technology is Shaping the Trading Desk of Tomorrow
The recent Fixed Income Leaders Summit (FILS) in Washington highlighted several transformative trends shaping the financial industry: artificial intelligence (AI), automation, and the expansion of trade electronification into less liquid securities. As TT builds out our new fixed income trading platform, we are aligning closely with these trends. In this blog post, I’ll take a look at them in more detail, then address how these trends are shaping our strategy.
AI and Automation Take Hold in Fixed Income
The overarching theme at FILS was the rise of AI and its impending integration across the entire trade life cycle. From enhancing investment decision-making to refining execution strategies, AI is poised to drive efficiencies and optimize performance.
Another prominent topic was the continued advancement in automation. While electronic communication networks (ECNs) initially spurred the electronification of fixed income trading and introduced valuable rules-based automation tools like auto-quote, auto-respond and auto-execution, the industry is now asking, “What’s next?”
Multi-Asset Trading in Demand as Electronification Increases
Multi-asset trading solutions sparked considerable discussion—particularly the evolving relationship between the execution management system (EMS) and order management system (OMS). The conference also underscored the continued expansion of trade electronification into less-liquid securities, such as municipal bonds and securitized products, along with the growing popularity of portfolio trading.
A key takeaway for me as the leader of a multi-asset EMS business is how urgently clients will need new technology that enables cross-asset execution, while seamlessly integrating with existing legacy systems.
The Impact of Automation
All of these themes tie into the central topic of the panel I spoke on at FILS—the opportunities that come from automation. The three main takeaways were (1) the desired optimism surrounding continued growth in electronification and automation; (2) the evolving role of human traders in an automated world; and (3) the unfortunate reality that there will be less humans and more machines in our future.
While we have made huge strides over the last ten years in electronifying and automating bond trading, we are still noticeably behind the other major asset classes such as equities, futures and foreign exchange (FX). Although it’s unlikely we’ll see 80%–90% of all fixed income trading occur on screens, there’s still substantial room for growth from current levels.
Advancements in technology and AI will be the driving force behind this next phase. Whereas standard “static” rules drove most automation over the past five years, “dynamic” rules-based automation—powered by AI that adapts execution strategies in real time—will define the next five.
Automation will likely result in fewer people on the execution side, with more trading responsibilities shifting to portfolio managers. By offloading repetitive trading tasks to technology, firms can redirect human talent toward high-value activities such as block trading and in-depth research. Execution traders who remain will likely oversee systematic automated strategies and, in many cases, take on cross-asset trading roles. But even portfolio managers may not be immune, as AI advancements could further reduce headcount.
Ultimately, automation is about leveraging technology to maximize return on investment from trading desks—and that’s exactly what we expect to see. This mirrors trends in other asset classes: more machines and fewer humans will be trading bonds in 2035 than in 2025.
Building Out Fixed Income at TT
I run our fixed income line of business, which is one of the largest areas of growth at the firm. Since I joined TT, I’ve essentially split my time between two main pursuits.
The first is running the old AxeTrading business that TT acquired in March 2023. This is predominantly a sell-side fixed income EMS business, with clients throughout the globe. My second responsibility has been to assemble a team, develop a strategy, and begin building out our next-generation fixed income EMS product which will be suitable for both buy-side and sell-side firms, of all shapes and sizes. In addition, this new fixed income EMS product will be integrated with all of our other lines of business, including Futures & Options, FX, Data & Analytics, Compliance, and Quantitative Trading Solutions, in order to create the multi-asset trading platform that clients are seeking.
The Future of Fixed Income
We’re taking a strategic, long-term approach to our fixed income product launch. As the saying goes, “slow at first and then all at once.” Greatness takes time, and we’re not looking to put the cart before the horse.
We are still building out our product, with an expected launch date in Q2 2026. For now, we’re focused on conversations with clients and the broader market to guide how we innovate and build what they truly need.
Quite simply, I believe the buy side is looking for better, faster, cheaper. TT’s cross-asset EMS will deliver a truly unified trading experience, setting a new standard few competitors can match. Built on technologically superior, cloud-native, API-first architecture, the TT platform will guarantee unparalleled performance, ultra-low latency and exceptional scalability, ensuring seamless integration with third-party software. We’re revolutionizing fixed income trading with new execution protocols—already highly effective in other asset classes—to empower our clients’ trading experience. We’re also committed to driving greater automation through the advancements in AI. And we’ll offer all of this at affordable prices, with exceptional customer service and support.
Our ultimate goal is to create a massive trading advantage to any customers that use the TT EMS—and ultimately to be recognized as the #1 trading software company in capital markets.
To find out more about TT’s fixed income offering and the future of cross-asset execution, contact us by filling in our online inquiry form.