Odd Lots The End of An Era for Odd Lots
Apr 22, 2019
Chris White, CEO of ViableMkts and BondCliQ, is an expert in market structure and credit trading. He discusses the recent decline of dedicated odd lots desks in major banks, signaling a shift in trading practices. The conversation dives into the evolution of odd lot trading, influenced by automation and competition, particularly in corporate bonds. Chris highlights the implications for manual trading and liquidity, while also exploring the challenges of all-to-all trading in the bond market amid concerns over systemic risks.
AI Snips
Chapters
Transcript
Episode notes
A Misunderstanding
- Chris White was invited on the podcast to discuss the end of odd lots trading.
- He initially misunderstood, thinking the podcast itself was ending.
Odd Lots Trading Evolution
- Major banks are removing the human element from odd lots trading, not stopping it entirely.
- Odd lots are unusually-sized trades, often small, and comprise a significant portion of total trades.
Who Trades Odd Lots?
- Retail investors have a minor role in corporate bond odd lots trading, unlike the equities market.
- Odd lots trading often involves institutional rebalancing of portfolios, creating smaller trades.