Canada’s Big Six banks have regained lost ground in institutional fixed income trading.
A Greenwich Associates report finds that the Big Six dealers increased their aggregate share of institutional fixed income trading volume to about 62% from approximately 51% the year before.
Those gains did not occur at the expense of other Canadian dealers, however.
Rather, the big domestic firms captured market share from foreign rivals that were cutting back on commitments to the Canadian market in the face of new capital reserve requirements.
Last year was a wake-up call for Canada’s major dealers,” says Greenwich Associates consultant Peter Kane.
The banks saw that their competitors were finding success, in part, due to strength in electronic trading. And in response, Kane says they upgraded their own capabilities in the electronic offering.
“These investments have helped them defend and recapture market share from foreign dealers—some of which are attempting to maintain or even grow their presence in Canadian fixed income through the electronic channel.”
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