JP Morgan: Third-party fees are fuelling the demand for direct connectivity

Hannah Baum, head of FICC E-commerce and sales for Europe, the Middle East, and Africa, at JP Morgan tells Trader TV that growing third-party platform fees and margin compression across the buy side are fuelling greater demand for direct connectivity to dealers.

The sales head says there are various ways in which asset managers can circumvent these increasing costs by using application programming interfaces (APIs) for streaming prices, and axes, and trading directly with the sell side.

Baum additionally unpacks what this direct connectivity also means for dealers, their bottom line and their relationships with the buy side.