[ P R E D I C T I O N S S E R I E S 2 0 2 3 ] has led to a wave of mergers and acquisitions in the asset management industry , prompting buy-side firms to review their trading functions and find a way to do more with less . In this environment , multi-asset trading has been gaining momentum and as such , trading desks are evolving to accommodate this shift . One challenge that remains is the need for cross-asset platforms to be able to excel across all asset classes , with high quality and consistent coverage , which can be difficult as technology , pricing and access to liquidity varies across asset classes . Technology will be key to ensure the shift toward multi-asset trading is seamless across the buy-and sell side . However , the expert human trader will continue to play an essential role in helping execute complex trades and larger blocks , against a backdrop of increased volatility and a hybrid working model . In these conditions , the buy . and sell-side will need to collaborate closely together to create a more efficient trading ecosystem , bring innovation to the market and allow multi-asset trading to flourish . Mark Govoni , chief executive officer , Liquidnet
The global economy seems on an inevitable march towards recession . The causes are well-known : central banks aggressively raising policy rates to reduce inflation , an energy shock in Europe , zero-Covid policies and a shaky property market in China . Much of Europe is already in recession . We expect one to begin in the US in the third quarter of 2023 , and while China ’ s growth will likely not turn negative , it will be below historic levels . One can easily think of ways in which the situation could yet worsen : a breakdown in a key financial markets due to the rapid rise in interest rates , a cold winter and blackouts in Europe , or a flare-up in geopolitical tensions between the US and China . Europe is facing an energy shock unlike anything the region has seen since the Organisation of Petroleum Exporting Countries ( OPEC ) price increases in the 1970s . Even though gas prices have moderated of late , they are still 10 times higher than the average in 2019 . Inflation is in double digits in some countries , consumer sentiment has collapsed , and demand is weakening along with disposable income . Nonetheless , we believe headline inflation has peaked and will return to the ECB ’ s 2 % target in 2024 . Daniel Morris , chief market strategist , BNP Paribas Asset Management
“ Just when I thought I was out , they pull me back in .” After an interesting covid-filled , couple of years , it is fair to say that 2022 did not disappoint with the number of challenges it brought for the market . I think that 2023 will continue to be an “ interesting ” trading environment , but one that will bring new opportunities . As the guardians of investors ’ financial futures , we have a duty to invest responsibly and with that in mind , I see ESG factors remaining front and centre of investors ’ minds next year . I am hopeful that the increase in global interest rates that we have experienced will achieve its aim of controlling inflation and that the cost-of-living crisis doesn ’ t last as long as expected . I am very much looking forward to Ireland winning the Rugby World Cup on the 28 October 2023 ! Matt McLoughlin , head of trading , Liontrust Asset Management
Since more than one-third of the institutional clients we surveyed in JP Morgan ’ s FICC e-Trading Survey at the end of last year suggested liquidity availability and price transparency were their key concerns entering 2022 , we focused on enhancing the tools provided to clients to navigate these markets and to reinforce cross asset systematic trading capabilities . Due to the benefits clients received from real-time monitoring tools in FX spot and how it impacted their usage of orders versus risk-transfer , we see rising demand for more
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