
Nasdaq Tackles High-Speed Trading in Treasurys - echion
http://www.wsj.com/articles/nasdaq-tackles-high-speed-trading-in-treasurys-1444694409
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elecengin
This fits with the general trend in trading in fixed income markets versus
equities markets.

Due to to the lower amount of liquidity (inventory available for someone who
wants to buy/sell), fixed income (bond) markets tended to be traded
traditionally - by negotiating with a number of firms individually (whether
electronically or over the phone). These traders are extremely worried about
someone hearing about their order and trading ahead of them (the actual
"front-running" that Flash Boys accused HFTs of doing!) Therefore, they want
to carefully release information about their interest in buying/selling to
brokers they can trust.

These markets are stubbornly difficult to automate. Attempts at creating open
markets where participants can trade anonymously with other participants have
mostly failed except in the most liquid fixed income markets. Even though
treasuries are some of the most liquid bonds "on the run" (recently issued),
other maturities can be extremely illiquid.

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HiLo
Most commodities markets get really thin a few years out the curve as well, so
if you're a large producer wanting to hedge your production the next few years
it may still be pretty tough without lots of slippage.

