The use of ‘axes’ that dealers provide to buy-side clients, giving an indication of the price at which they will trade at a given size, proved controversial on a panel at the FIX EMEA Trading Conference in London.

Just under half of the audience called it “an indication of interest to trade that is provided by a dealer” in a straw poll, but around 39% labelled axes as “a position that is held by a dealer in which they want to advertise to clients”. Only 13% defined an axe as “a firm price”. … read more