Deutsche Bank AG is trying to drum up interest with some of its largest competitors to create a multi-dealer U.S. bond trading platform at the same time that asset managers discuss ways to make buying and selling debt easier, according to people familiar with the matter.
Europe’s biggest investment bank by revenue has pitched its plan for an electronic trading network to JPMorgan Chase & Co., Citigroup Inc. and Barclays Plc, according to five people briefed on the talks, who asked to not be named because the discussions are private. Executives at State Street Corp. and FMR LLC’s Fidelity Investments are among institutional investors that have held a series of meetings, the last one in July in New York, to address the difficulty of finding the bonds they want to trade, according to two different people.
While clients have been wary of trading on platforms run by one bank, broker-dealers haven’t agreed on parameters that would allow a single platform run by several companies to emerge, two people involved in the market said this week.
Executives at Fidelity, the world’s second-largest mutual fund company, and State Street, the third-biggest custody bank, met in May 2012 with representatives from Deutsche Bank, Barclays, JPMorgan and Goldman Sachs, urging the dealers to develop an electronic-trading system for bonds, people who attended the event said last year. The group has held a series of meetings this year, some with only institutional investors present, some with only banks, and some with market vendors, two people familiar with the matter said this week.