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Extraction Summary
3
People
1
Organizations
0
Locations
1
Events
3
Relationships
4
Quotes
Document Information
Type:
Financial conference report/presentation slide
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Summary
This document is a slide from the Bank of America Merrill Lynch '2016 Future of Financials Conference' held on November 17, 2016. It analyzes asset managers' views on technology adoption, the expected growth of the fixed income ETF market, and concerns about market liquidity and risk, featuring commentary from speakers Mr. Callahan, Mr. Brown, and Mr. Olesky. Despite the prompt's framing, this document contains no discernible information, names, or events related to Jeffrey Epstein.
People (3)
| Name | Role | Context |
|---|---|---|
| Mr. Callahan | Speaker/Panelist |
Mentioned in the context of the ETF market for fixed income securities. He noted increased liquidity in ETFs and expe...
|
| Mr. Brown | Speaker/Panelist |
Mentioned in the context of market liquidity. He is noted as being more concerned with the speed at which liquidity c...
|
| Mr. Olesky | Speaker/Panelist |
Mentioned in the context of risk management. He points out risks from PTFs in the treasury market and prefers a centr...
|
Organizations (1)
| Name | Type | Context |
|---|---|---|
| Bank of America Merrill Lynch |
Host of the '2016 Future of Financials Conference' and the source of the research presented ('BofA Merrill Lynch Glob...
|
Timeline (1 events)
17 November 2016
The '2016 Future of Financials Conference' hosted by Bank of America Merrill Lynch, where topics like electronification, ETF markets, and risk management in fixed income were discussed.
Not specified
Relationships (3)
Both are quoted speakers in the context of the same financial discussion at the 2016 Future of Financials Conference.
Both are quoted speakers in the context of the same financial discussion at the 2016 Future of Financials Conference.
Both are quoted speakers in the context of the same financial discussion at the 2016 Future of Financials Conference.
Key Quotes (4)
"general sentiment from asset managers is that electronification is something they want as it leads to efficiency."Source
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Quote #1
"[Mr. Callahan] expects the fixed income ETF market to grow significantly and be very impactful to the overall market structure."Source
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Quote #2
"Mr. Brown is more concerned with the speed at which liquidity can change."Source
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Quote #3
"Mr. Olesky... prefers a central clearinghouse for fixed income transactions."Source
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Quote #4
Full Extracted Text
Complete text extracted from the document (2,412 characters)
electronification is something that pays dividends, these benefits occur over time.
That said, general sentiment from asset managers is that electronification is
something they want as it leads to efficiency.
Chart 90: As you think about corporate strategy for asset managers, how open is your firm with
embracing new technologies/electronification in the fixed income space?
60%
50%
40%
30%
20%
10%
0%
19%
52%
29%
Top priority in corporate
strategy
Modest priority in corporate
strategy
Low priority in corporate
strategy
Source: BofA Merrill Lynch Global Research
ETF market for fixed income securities expected to grow significantly. Unlike in
the equities market where ETFs are 7% of the volume traded, fixed income ETFs
are still sub-1% (0.8% at YE15). As the market continues to grow, particularly in the
asset classes where the underlying bonds aren't that liquid, Mr. Callahan noted
seeing increased liquidity in the ETFs for liquidity reasons. Following in the
footsteps of the equities market, Mr. Callahan expects the fixed income ETF market
to grow significantly and be very impactful to the overall market structure.
Greater concern around speed at which liquidity can change vs. liquidity in the
market. There is a lot of concern around liquidity in fixed income markets. That
said, Mr. Brown is more concerned with the speed at which liquidity can change.
There has been growing evidence that the market is going to adjust greater and
faster than the underlying fundamental reasons for the correction. As such, this is
causing participants to revisit how they look at risk management. Now market
participants need to take into account not only their behavior, but their reaction to
other participants' behavior (i.e. contagion effect).
Fewer, well-established platforms reduce overall risk within system. Eighty-nine
(89%) percent of the audience polled prefer to conduct business with a few, well-
established platforms to diminish risk within the system. Using the government
bond market as an example, Mr. Olesky points out that the growing contribution
from PTFs to the overall treasury trade volume has increased the risk outside the
primary-dealer system. This is a risk Mr. Olesky believes needs to be addressed and
prefers a central clearinghouse for fixed income transactions.
Bank of America
Merrill Lynch
2016 Future of Financials Conference | 17 November 2016 61
HOUSE_OVERSIGHT_014375
That said, general sentiment from asset managers is that electronification is
something they want as it leads to efficiency.
Chart 90: As you think about corporate strategy for asset managers, how open is your firm with
embracing new technologies/electronification in the fixed income space?
60%
50%
40%
30%
20%
10%
0%
19%
52%
29%
Top priority in corporate
strategy
Modest priority in corporate
strategy
Low priority in corporate
strategy
Source: BofA Merrill Lynch Global Research
ETF market for fixed income securities expected to grow significantly. Unlike in
the equities market where ETFs are 7% of the volume traded, fixed income ETFs
are still sub-1% (0.8% at YE15). As the market continues to grow, particularly in the
asset classes where the underlying bonds aren't that liquid, Mr. Callahan noted
seeing increased liquidity in the ETFs for liquidity reasons. Following in the
footsteps of the equities market, Mr. Callahan expects the fixed income ETF market
to grow significantly and be very impactful to the overall market structure.
Greater concern around speed at which liquidity can change vs. liquidity in the
market. There is a lot of concern around liquidity in fixed income markets. That
said, Mr. Brown is more concerned with the speed at which liquidity can change.
There has been growing evidence that the market is going to adjust greater and
faster than the underlying fundamental reasons for the correction. As such, this is
causing participants to revisit how they look at risk management. Now market
participants need to take into account not only their behavior, but their reaction to
other participants' behavior (i.e. contagion effect).
Fewer, well-established platforms reduce overall risk within system. Eighty-nine
(89%) percent of the audience polled prefer to conduct business with a few, well-
established platforms to diminish risk within the system. Using the government
bond market as an example, Mr. Olesky points out that the growing contribution
from PTFs to the overall treasury trade volume has increased the risk outside the
primary-dealer system. This is a risk Mr. Olesky believes needs to be addressed and
prefers a central clearinghouse for fixed income transactions.
Bank of America
Merrill Lynch
2016 Future of Financials Conference | 17 November 2016 61
HOUSE_OVERSIGHT_014375
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