DelphX: No Bond Inventory? No Problem

December 10, 2015

Institutional investors, including mutual fund managers, will be able to lend their bonds to Wall Street and help fixed-income trading markets get moving again, once a new electronic platform becomes available next year. That’s the idea behind DelphX, a communications network that will allow Wall Street banks to get around regulators’ restrictions on their securities inventories, essentially renting positions from investors to support trading. By renting, not owning, banks won’t have to put up expensive capital to facilitate market making…

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