The JP Morgan e-Trading Edit for 2024, the 8th annual report, has been released, with input from 4,010 institutional traders across more than 65 countries.
In the report, inflation was cited as the development that would have the greatest impact on markets in 2024 (27%), followed by the US Election (20%), and recession risk (18%). This compares with recession risk (30%) and inflation (26%) in 2023.
Traders were asked to predict their greatest daily trading challenge in 2024. Volatile markets (28%) led, with liquidity availability (24%) following, and workflow efficiency (13%) making up the podium. Less than 1% of people selected price transparency, while 7% selected the availability and cost of data.
AI/machine learning was a resounding leader in the technology that traders predict as being the most influential in shaping the future of trading over the next three years.
The top three were AI/ML (61%), API integration (13%), blockchain/DLT (7%).
Access to liquidity (31%) was selected as respondents top market structure concern, followed by regulatory change (20%), and market data access and costs (15%).
Traders in every asset class predict an increase in the proportion of their trading activity that is electronic this year.
The main benefits of direct connectivity are access to liquidity (34%), reduced execution/brokerage costs (23%), and access to cutting-edge execution technology (16%).
Apart from pricing and execution, the three most important features of a trading platform are user-friendliness of the platform (19%), availability of data (18%), and analytics (15%).
The fixed income market is expected to have the most advances in electronic trading this year, with corporate bonds (20%) coming first, government bonds (13%) third, and ETFs in second place (15%).
In a rebuke of digital assets, a significant 78% have no plans to trade crypto/digital coins, up 6% YoY. 12% plan to trade crypto/digital coins, and 9% already are.
©Markets Media Europe 2024
