Muni Bond Market Is Left Behind in Move to Electronic Trading

  • 11% of trading volume by par amount is executed electronically
  • $4 trillion market is still ripe for automation, analyst says
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Municipal bonds are being left behind as other fixed-income sectors move to electronic trading.

Only about 11% of muni bond trading volume was executed electronically in May, a share that hasn’t moved in the past three years, according to an estimate last month from Coalition Greenwich, a financial services industry analytics firm.