A method and
system is provided for automated trading of fixed income securities which enables institutional investors, broker dealers and others, to transact directly and anonymously for the purpose of trading investment grade, high yield corporate bonds, municipal bonds or other fixed income securities. A financial institution acting as a Fixed Income Securities
system sponsor can act as
counterparty to transactions, from trade execution through settlement, and can also serve as a credit intermediary. Computer systems are utilized in conjunction with an electronic communications network to facilitate such fixed income security trading activities.
Software routines can direct a trader to various fixed income securities available according to specific criteria put forth by the trader.
Software routines can also provide information and services related to the automated trading of fixed income securities. Data relating to trading a fixed income security is transmitted from a Fixed Income Trading (FIT)
system and information relating to the sale of a fixed income security is received. A live order, based upon the sale information received, can then be executed or transmitted to a point of execution. The live order provides that the FIT system acts as
counterparty to each transaction such that a
client trader can remain anonymous to a party on the other side of a trade. In this manner, a first trade can be executed between a party selling a fixed income security and the FIT system, and a second trade can be executed between the FIT system and a party
purchasing the fixed income security. In addition, the FIT system operators can
commit to market liquidity for the fixed income security traded. Numerous types of fixed income securities can be traded, including investment grade, high yield corporate bonds, municipal bonds or other types of securities.