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functionality and interactive capabilities in FX and at the same time greater pre- and post-trade transaction cost analytics in fixed income and commodity markets in 2023 . These solutions will come via bank-specific and third-party channels to enrich the execution decision process and address the increasing data needs of traders and portfolio managers alike as well as the data scientists who support those trading efficiencies . Algos are set to continue to grow by volume in FX due to sophisticated decisionmaking processes supporting best execution requirements and new demand will arise for these orders in areas like US Treasuries which are starting to see new solutions developed . Government bond trading will broadly witness changes to trading protocols aided by improved streaming pricing , similar to FX spot , helping clients with price discovery , reduce information leakage and serve as a steppingstone towards more algorithmic trading solutions . Alex Nowak , head of continental European FICC e-sales , JP Morgan
Many of the factors currently affecting the economy will persist in 2023 . As the Russia-Ukraine war , pressure on energy prices and increasing covid infections continue to weigh on markets , liquidity and the cost of liquidity will remain a top priority in the new year . Regulation-wise , the recently published Emir review could force EU market participants to clear certain Euro-denominated asset classes in EU CCPs . In turn , this could shrink the liquidity pool in Europe and restrict the buy-side from leveraging trading efficiencies , ultimately costing them more to trade and impacting end investors . However , increased use of e-trading innovations , such as portfolio trading , and new trading protocols , like request-for-market ( RFM ), are positive advances that can help institutions address liquidity challenges . Another market structure development that would provide investors with better post-trade data and help improve pre-trade decision-making is the long-awaited consolidated tape . Next year , we should see industry discussions and collaborations on the tape intensify , bringing us one step closer to its establishment . Jennifer Keser , head of market
92 // TheTRADE // Q4 2022