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Re-wiring equities and fixed income

Regulatory changes and a pressure to cut costs are forcing banks to rethink how two jealously guarded empires can be combined. FN reports on their convergence

Fixed income and cash equities traders have historically kept each other at arm’s length. Widely different product sets, unique trading models and a fierce battle for bank resources have resulted in clear separation between the two divisions.

However, a combination of new regulations forcing bonds to trade with the same level of transparency as stocks and a severe pressure on banks to cut costs is slowly eroding traditional boundaries.

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