The market participant’s behavior in the fixed income market is quite different from the equities market, where there are significantly fewer trades concluded, but with significantly higher volumes transacted per trade. As a result, ESX has put in place a market model that is fitting to the behavior of the fixed income and money markets. ESX plans to organize these markets via Request for Quote (RFQ) and trade reporting models that are well suited to this market.

For the functioning of this secondary market, RFQ as well as binding orders can be submitted on the ESX trading platform. RFQ requests can be initiated anonymously or with full transparency and a trade can be finalized directly in the system or bilaterally between the counterparties and then reported to the exchange. ESX’s unsecured and secured (Repo) money market is similarly conducted on a negotiable basis and can be supported by the same functionality deployed for the long-term fixed income markets.