Bond trading platforms seen getting winnowed

London

IF investors are right that it's getting harder to trade bonds, it's not for lack of places for buyers and sellers to meet. The bond market now has 99 electronic platforms to facilitate fixed-income trading from London to New York and Singapore, according to technology consultancy Alignment Systems. New venues are being created as stricter regulatory capital rules and advances in technology upend the role of Wall Street dealers that once dominated the market.

Banks that for decades ruled corporate-debt trading by holding large inventories of bonds to meet client requests have pulled back from making markets, opening the door for startups and seasoned technology firms to fight for market share. Their success could be foiled by the very thing they're capitalising on and the market's biggest problem: dwindling liquidity.