# Sizes of European government debt trades halve in 2023-ICMA
Author:  Pal Sinha, Barnali 
Author URL: https://financedigest.com/author/pal-sinha-barnali
Published: 2020-11-25
Category: INVESTING
Category URL: https://financedigest.com/category/investing
Meta Title: European Government Debt Trade Sizes Halve in 2023
Meta Description: Discover how European government bond market liquidity is declining, forcing investors to make smaller, more frequent trades. Stay ahead of the curve with ICMA
URL: https://financedigest.com/sizes-of-european-government-debt-trades-halve-in-2023-icma-2html

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_By **Keith Bortoluzzi,** CEO, Thread_

For centuries, getting the right information to make sound financial decisions and investment thesis was a major challenge. For example, insurance premiums, first developed in the 14th century, were originally priced intuitively due to the fact that no data existed on risk.

Similarly, [traders on the Amsterdam Stock](https://www.financedigest.com/analysis-u-s-retail-traders-pile-back-into-options-as-meme-stock-mania-flares.html "Analysis-U.S. retail traders pile back into options as meme-stock mania flares") Exchange, established in 1602 and the first of its kind, would glean information through conversations with peers or merchants. Short-term speculative [trading was the norm in this environment and little energy](https://www.financedigest.com/euro-zone-posts-record-trade-deficit-in-august-amid-soaring-energy-prices.html "Euro zone posts record trade deficit in August amid soaring energy prices") was put into proof-checking the data or information that was being used.

During most of the 20th century, investment professionals have spent huge amounts of time reviewing [company reports](https://www.financedigest.com/title-rubber-gloves-market-research-report-2030-top-companies-market-size-and-forecast.html "Rubber Gloves Market Research Report 2030: Top Companies, Market Size and Forecast") and newspapers in order to find the most useful information. As time progressed the problem of data scarcity was replaced with data overload, but even with more information, the analysis part of the process was often no better than our 14th century [insurers](https://www.financedigest.com/different-countries-different-insurance-cultures-how-insurers-can-adapt-their-products.html "insurers"), limited to educated guesses from individuals working in silos.

**The** [digital revolution](https://www.financedigest.com/the-fintech-digital-revolution-will-continue-in-2022.html "The Fintech Digital Revolution Will Continue in 2022")

Technology has, of course, revolutionised the way we access and use information. Starting in the 1990s, affordable personal computers and spreadsheet software such as Excel enabled individual [investment managers](https://www.financedigest.com/mg-appoints-former-head-of-axa-investment-managers-andrea-rossi-as-new-ceo.html "M&G appoints former head of AXA Investment Managers Andrea Rossi as new CEO") to harvest large datasets and derive insights from them.

The democratization of the internet meant that [data](https://www.financedigest.com/whose-role-is-it-anyway-why-finance-underpins-data-led-digital-transformation.html "Whose role is it anyway? Why finance underpins data-led digital transformation") like financial ratios, rankings, and other financial information became commodities.

As access to data improved, investors dedicated increasingly more time and money to [analysis in the hope that acquiring a greater volume](https://www.financedigest.com/covid-19-impact-on-attitude-and-heading-reference-systems-market-volume-analysis-future-prediction-industry-overview-and-forecast-2028.html "Covid-19 Impact On Attitude and Heading Reference Systems Market | Volume, Analysis, Future Prediction, Industry Overview And Forecast 2028") of insights would translate into higher portfolio performance. [Investors now spend the majority of their time](https://www.financedigest.com/credit-suisse-executives-reassure-investors-after-cds-spike-financial-times-reports.html "Credit Suisse executives reassure investors after CDS spike, Financial Times reports") working on upstream, namely collection of data, and midstream, the deriving of actionable insights from data, processes, investing in faster computers and more sophisticated analytical techniques to improve their informational advantage – but is this resulting in better outcomes?

Although our human brains are pretty exceptional when it comes to absorbing and processing information, the sheer volume and complexity of data which investors have access to makes it impossible for them to handle in isolation. Investors require tools which help them collect data, decide on the most relevant information and turn this insight into actionable investment decisions.

![Keith Bortoluzzi](https://prod.superblogcdn.com/site_cuid_cm5qst7v3003gwirgwqtxn8i8/images/keith-bortoluzzi-2-1-450x300-1737287552154-compressed.jpg)

Keith Bortoluzzi

**Next-generation productivity tools**

Covid-19 has highlighted fundamental problems with first-generation productivity tools used by [Asset Managers](https://www.financedigest.com/french-asset-manager-amundi-posts-q3-outflows-of-13-billion.html "French asset manager Amundi posts Q3 outflows of billion"), many of which are designed for single users but are not well suited to entire teams.

To be truly productive in today’s interconnected but physically-remote world, [investment teams need a new approach to digital](https://www.financedigest.com/intelligent-investment-in-digital-transformation-driving-change-from-the-grassroots.html "Intelligent investment in digital transformation: Driving change from the grassroots") collaboration. A next-generation technology which enables them to share and discuss ideas in [real time](https://www.financedigest.com/the-role-of-invisible-real-time-payments-in-fueling-the-future-of-cx-in-business.html "The role of invisible, real-time payments in fueling the future of CX in business"), as well as retain learnings for the good of the whole team and wider business.

We know that Asset Managers derive their best and most original investment ideas from the collective knowledge of specialists within their organization, such as industry experts, bonds, or equity analysts. Cross-industry expertise and collaboration are often required to crack the most complex [investment opportunities](https://www.financedigest.com/unlocking-fresh-business-investment-opportunities-beyond-covid.html "Unlocking fresh business investment opportunities beyond COVID").

Traditionally, investment teams have relied on different files, tools, and methodologies to source, [build or update investment](https://www.financedigest.com/ford-to-invest-around-300-million-to-build-electric-car-parts-at-uk-plant.html "Ford to invest around 0 million to build electric car parts at UK plant") theses. The ability to share information and collaborate on ideas has often been based on the back-and-forth, informal communication between team members. Our own experience of working with investment teams which use first-generation tools shows it is also very common to [see](https://www.financedigest.com/eu-sees-more-work-ahead-to-implement-russian-oil-price-cap.html "EU sees more work ahead to implement Russian oil price cap") separate teams reviewing the same information several times instead of capitalizing on each other’s work because they don’t have the right tools to collaborate and properly split their workflow.

**Capitalizing on collective knowledge**

To ensure they are using the expertise and insights they have access to, investors [need a digital workspace where all relevant information and people](https://www.financedigest.com/people-need-people-humanising-the-digital-banking-experience.html "People need People – Humanising the digital banking experience") are gathered in one place to create, discuss, and challenge investment ideas. [Technology can now recreate those in-person discussions which are so essential to good investment](https://www.financedigest.com/adnami-to-receive-six-figure-sum-of-investment-from-danish-government-in-recognition-of-its-pioneering-technology-and-strategy.html "Adnami to receive six-figure sum of investment from Danish government in recognition of its pioneering technology and strategy") thesis, while also creating a central repository for insights and conversations so Asset Managers don’t have to ‘reinvent the wheel’ each time.

This should include such features as real-time editing and commenting on investment notes, a centralized and shared views build so that teams can [tap into a ‘single source](https://www.financedigest.com/exclusive-u-s-asks-japan-china-others-to-consider-tapping-oil-reserves-sources.html "Exclusive-U.S. asks Japan, China, others to consider tapping oil reserves -sources") of truth’, access to company restatements and estimates made by your colleagues, and the ability to edit estimates directly within a shared table which removes the hassle of copying and sharing Excel sheets with teams as a way to share knowledge.

If one [positive can come out of the Covid-19](https://www.financedigest.com/tissue-tapes-market-remains-afloat-amid-covid-19-pandemic-to-surge-positively-projects-fmi-2019-2029.html "Tissue Tapes Market Remains Afloat amid COVID-19 Pandemic, to Surge Positively, Projects FMI 2019 – 2029") crisis, it is the acceleration of digital, the chance to reimagine the way we work and find tools which better fit our needs. Innovation usually takes iterative [steps towards](https://www.financedigest.com/steps-toward-fostering-a-security-first-culture.html "Steps Toward Fostering a Security-First Culture") a final revolutionary product that changes the world, but the current crisis as a unique opportunity to break down silos and make a big leap into collaborative, next-generation investment technology.


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