A Last Vestige of ‘Old Wall Street’ Changes as Munis Go Electric

Electronic trading is slowly but steadily infiltrating one of the stodgiest corners of the American bond market.

A survey of institutional investors, such as mutual-fund managers and insurance companies, found that 62 percent reported using electronic-trading platforms in 2018, up from roughly half only two years ago, according Greenwich Associates.

“The municipal market’s reputation as the last piece of the old Wall Street is about to change,” said Kevin McPartland, the head of market structure research for the consulting firm.

The survey joins a growing body of evidence that electronic-trading platforms are gaining a growing share of trading in ...