Bond trading volume in Europe fell 14 percent in the first quarter compared with the same period in 2015, according to figures provided by bond trading platform and data provider MarketAxess. High volatility in the three months to March against a backdrop of tightening financial regulation took their toll, with big investment banks' first quarter results expected to show a similar decline in fixed income trading revenue.
Many have already announced they will slash thousands more jobs. Credit Suisse said in January it will cut 4,000 jobs and in March said it will axe another 2,000 positions, while Deutsche Bank's chief executive said the bank is unlikely to make a profit this year. MarketAxess cited data from its subsidiary Trax's trading platform. It showed volume in Europe on the platform totalled 7.08 trillion euros ($8.05 trillion) in the first quarter, down 14 percent on the 8.22 trillion recorded in the same period last year.
It was also the lowest Q1 total since at least 2013 when Trax started compiling comparable figures. The first three months of the year is traditionally the most lucrative quarter for fixed income trading as investors put their money to work for the year ahead. "European fixed income markets continue to be challenged," said Scott Eaton, chief operating officer for MarketAxess Europe and Trax. "Uncertainty surrounding regulatory change, the potential of the UK leaving the European Union, lower new issuance and reduced capacity of traditional dealer risk-based liquidity have a cumulative impact on secondary market activity."ast 2013.
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