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

Monday 20 May 2013 at 17:00

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.