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Finance and Credit

Technological transformation of debt securities markets and its effects

Vol. 29, Iss. 2, FEBRUARY 2023

Received: 26 December 2022

Received in revised form: 16 January 2023

Accepted: 30 January 2023

Available online: 28 February 2023

Subject Heading: Securities market

JEL Classification: G18, G23, G28, O16

Pages: 244261


Konstantin V. KRINICHANSKII Financial University under Government of Russian Federation, Moscow, Russian Federation


Subject. This article examines the impact of electronification on the economy and business model of broker-dealer companies and the structure of the debt securities market.
Objectives. Based on the analysis of the process of electronification of debt securities markets observed over the past 20 years, the article aims to identify the effects of the consequences of this process in relation to the key players of these markets, as well as assess what trends and factors influence the markets structure change.
Methods. For the study, I used elements of the systems approach, comparative intermarket analysis, and the impact analysis of the technological component of economic development at the micro level.
Results. The article reveals the main features of the electronification of the debt securities market and the factors of electronic trading spreading in the sector of fixed income instruments, as well as it identifies threats related to the change in the structure of the analyzed market, consisting in the growth of the proportion and impact of high-frequency trading.
Relevance. The results can be used by the Bank of Russia in strategizing the debt securities markets development to ensure technological leadership.

Keywords: bond market, stock broker, dealer firm, bond market electronification, automated trading


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