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Figure 3
Trading desk of the future:
traders’ view
But when traders were asked
which technologies will have the
most impact on markets over the
same timeframe, we saw different
results. (see figure 2)
Execution management systems
(EMS) topped the list with
41%, closely followed by trade
performance analytics at 40% and
cybersecurity (35%).
The EMS is the trader’s window
to the world and the single most
critical tool needed to succeed in
that seat.
Even if it is, in fact, artificial
intelligence, data mining or
cloud computing that is actually
providing a trader with the tools
needed to win, it is the EMS
that makes these underlying
technologies functional and
available. Many market participants are
already harnessing the power of
AI, with 44% using AI/machine
learning in their trading processes
and a further 17% saying that they
plan to incorporate it over the
next 12 to 24 months.
Of note, 80% expect AI/machine
learning to be fully embedded in
trading processes within the next
three to five years. With only 44%
actively using these solutions
today, we can expect to see
significant change in the coming
years.
Data availability remains a
significant challenge in the AI
arena.
Whereas the biggest global
technology firms can access vast
quantities of data with ease, most
financial services firms must
make do with limited datasets.
Moreover, they must remain
cognisant of the stringent privacy
regulations that govern the use
of customer data, often hindering
the progress of AI initiatives.
The disruptive potential of
artificial intelligence
According to 56% of respondents,
artificial intelligence (AI) will be
the most potentially disruptive
technology over the next three-
to-five-years (see Figure 3). Trading technology innovation
Technology and innovation have
contributed to greater efficiency
and a better customer experience,
while more readily available
data and complex analytics have
enabled greater transparency and
performance analytics will all be
critical to the success of trading
desks in the coming years.
30 // TheTrade // Winter 2019
better price decisions.
As a result, the firms that can
effectively and consistently
aggregate and normalise huge
quantities of data are now
extremely valuable.
The future of trading is
indelibly intertwined with
trading technology innovation,
and the real edge will be gained,
maintained or lost based on how
technology is deployed and put
to work.
The future of trading survey
More than 100 capital markets
professionals across the globe
participated in our online study.
Respondents were drawn from
across firm types, including the
buy-side, technology vendors,
broker-dealers, consultants/
industry groups, exchanges/
trading venues and more. The
survey respondents also spanned
a wide range of generations.
Looking ahead, we will continue
this series by examining the data
explosion and what this means for
future workflows, and finally, how
the relationships between trading
professionals are evolving.
• Read our full report ‘The Future
of Trading: Technology in 2024’ at
refinitiv.com