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Lucas Nuzzi director of technology, Digital Asset Research
For the past three years,
conversations around the
institutionalisation of digital
assets focused in part on the
lack of qualified custodians.
That changed in 2019, as major
institutions like Fidelity stepped
in with custody offerings. In 2020,
the issue of market manipulation
and clean crypto prices will
be the main focus of financial
institutions and regulators alike.
Over the course of this year,
US regulators signaled time
and time again that the lack
of reliable pricing is the main
barrier preventing the approval of
exchange-traded products, like a
Bitcoin ETF. This will necessitate
the vetting of exchange pricing
Tyler Moeller
CEO, Broadway Technology
Ongoing disruption in the capital
markets will force banks to take a hard
look at their FICC trading operations in
2020. To grow and thrive, they will need to
establish a relentless focus on their franchise
value, embrace more of the ‘build and buy’
model of trading technology, and deploy a rich
application integration platform as the foun-
dation of their technology stack. Banks will
recognise they can – and must – outsource
more of their trading architecture to trusted
partners to accelerate internal innovation,
deftly handle aspects like order manage-
ment and Ecommerce, and enable trading
workflow automation between various areas
of their FICC operations. As banks search
for efficiency, we’ll see a consolidation of
technology and business areas and the
creation of a centralised FICC trading desk.
This evolution will be necessary to drive
innovation while reducing
costs and maintaining
competitive advantage
as trading margins and
regulatory requirements
continue to tighten.
data in a way
that identifies,
quantifies and
excludes manipulated data from
price calculations. Clean prices
will contribute to more reliable
valuations and risk management,
and will ultimately make
institutions more comfortable
with the asset class.
As market participants look to cut
costs and operational risk, demand for
more efficient trading solutions will
increase. Portfolio trading will be a key
focus for institutional investors and
trading venues. Electronic portfolio
trading will drive the migration to fully
electronic workflows. We’ve already
witnessed this shift after we launched
our own portfolio trading solution,
which we’ll continue to tweak and
enhance in 2020. In a market where
ETF basket trading is so vital each day,
electronic portfolio trading is an inno-
vation that will shape
the future of the fixed
income space.
Enrico Bruni
head of Europe and Asia
business, Tradeweb
Issue 62 // TheTradeNews.com // 65