BUY-SIDE NEWS
FINTECH
The International Capital Market Association
stated the buy-side must work harder and lever-
age technology to access liquidity in fixed income,
according to the group’s quarterly report. AI technology to replace
90,000 buy-side jobs by
2025
French asset manager, Amundi, has raised
concerns with the EU watchdog about its failures
to handle data collected from trade repository
(TR) reporting. In a response to the European
Securities and Market Authority’s (ESMA) recent
consultation on TRs, it highlighted its dismay at
the regulator’s confession that it is struggling to
confirm figures on trade reports. New report predicts artificial intelligence
will replace 230,000 jobs across capital
markets globally by 2025.
Budgets for fixed income trading desks increased
in 2016 for technology as the industry prepares
for shifts in interest rates. A poll of 270 buy-side
traders globally - carried out by Greenwich Asso-
ciates - found fixed income trading desk budgets
increased on average 3% year-on-year.
The pace of change in improving client outcomes
for best execution has been slow and few firms
have a cohesive strategy in place, the Financial
Conduct Authority (FCA) has said. The regulator
expressed concerns on the oversight of best exe-
cution and stated it expects all firms to be aware
of best execution monitoring.
Standard Life and Aberdeen Asset Manage-
ment have agreed terms for a potential merger
to create one of the UK’s largest fund managers
overseeing £660 billion in assets. Both firms
confirmed they are in discussions for Standard
Life to acquire its rival Aberdeen for £3.8 billion in
a potential all-share merger.
10
TheTrade
Spring 2017
By 2025, artificial intelligence (AI) technology will
reduce the number of employees in asset management
globally by 90,000, according to research.
A new report authored by research and consulting
firm, Opimas, found employees in capital markets
globally will decrease by 230,000 and the asset man-
agement industry will likely shrink the mos as a result
of AI implementation.
“AI will intensify clients’ disenchantment with tra-
ditional asset managers and lead them increasingly to
cheaper and automated strategies,” it said.
The report explained AI technology, including robot-
ic process automation, machine learning and cognitive
analytics, will significantly reduce headcounts across
financial services firms.
“Securities services firms, given the repetitive nature
of many tasks conducted by them, are ideal candidates
for a contraction of staff due to the rollout of AI tech-
nologies,” it added.