Traditional sell-side bond trading desks are coming under increasing pressure from alternative liquidity providers and automated trading platforms. The latest casualty: NatWest.
NatWest Markets recently confirmed that it will be leaving the primary dealership space outside the UK, covering its Europe (Germany, France, Italy, Netherlands, Belgium, Ireland and EU) and US operations.
These programmes consist of banks appointed by governments to participate in sovereign debt issuance and support trading of the bonds.
A spokesperson commented, “These changes will allow us to focus resources on areas where we can deliver the greatest value for customers and support future growth.”
The bank remains committed to the UK gilt market as a Gilt-Edged Market Maker and to supporting clients in the US and Europe, it has confirmed.
NatWest reported £2.2 billion in C&I income for Q2 2026, up 4% year-on-year.
At FILS Europe, the rates trading practices of banks was raised – with one speaker noting that a number are “switching off” their rates algos and that automation is not always the most fitting solution.
“Fixed income trading is a relationship business,” they affirmed.
It is not clear whether NatWest’s decision has been driven by increased automation of trading across the business.
A number of roles will be at risk as part of the reorganisation. NatWest declined to comment on specific names and titles. A spokesperson told The DESK, “The impact to colleagues is distinct in each location and we are supporting affected colleagues throughout this period of uncertainty, including exploring alternative opportunities within the bank where possible.”
As part of the reconfiguration of the wider commercial and institutional (C&I) business, from Q1 2027 operations will be split between fixed income and markets financing, currencies, and debt capital markets. The latter will be renamed from the primary capital markets division, although its scope will not be changed.
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