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Wall Street Accelerates Shake-Up in Market for New Bonds

  • Banks starting company to run electronic bond-ordering system
  • Investors have pushed for change in how bonds are allocated
Commuters exit the Wall Street subway station near the New York Stock Exchange (NYSE) in New York.
Photographer: Michael Nagle/Bloomberg

Wall Street is moving closer to modernizing the clubby $2 trillion market for new corporate bond issues while seeking to retain control of a lucrative business that’s being eyed by the tech sector.

A group of banks led by Bank of America Corp., Citigroup Inc. and JPMorgan Chase & Co., has set up a company and appointed a chief executive officer to develop an electronic system for investors to request allocations of new debt, according to people familiar with the matter.