A new report suggests the sell side could reverse some woes besetting the industry.
New research from global market research firm Crisil Coalition Greenwich shows hopeful sentiment from sell-side electronic trading desks that a series of woes besetting the industry of late may soon be reversed.
This will be good news to buy-side firms that have had to deal with inadequate customer service, as sell-side electronic trading desks contend with declining commissions, rising costs, and intense competition.
“The U.S. Equity Electronic Trading: The Broker View 2025” report, which looks back on Q2/Q3 traders’ 12-month outlook for the industry and their own desks, found that electronic trading desks expect to see a range of headaches that have been plaguing the business put to bed. These include increased regulatory burdens, staffing issues, and suboptimal tech systems. The study saw traders predicting a new spate of hiring — almost half of participants expect to add headcount to their frontline trading-desk coverage in the coming year.
In addition, traders expect a more effective and efficient regulatory environment all around, after the U.S. Securities and Exchange Commission (SEC) recently renewed its focus on market structure and trading issues.
Finally, while execution and connectivity costs are consuming the lion’s share of trading commissions, desks say advancements in artificial intelligence (A.I.) and automation technologies are positioning the industry for growth. Only time will tell if this sunny forecast comes to fruition.
More about the report can be found here: https://shorturl.at/qxqKu
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