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suggested.“ This could be a defining trend in 2025.”
Central to much of the discussion around future market structure and the liquidity landscape was the consolidated tape. While the topic has been at the core of industry discussion for several decades now, the consolidated tape is expected to make headway in 2025.
The European Commission has mandated the creation of a single entity to operate a real-time preand post-trade CT for equities for five years as part of the Mifir Review, which came into force in April earlier this year. The European Securities and Market Authority( ESMA) will begin the selection process in June of this year and choose a successful applicant by the end of 2025.
“ The consolidated tape won’ t be a silver bullet, but it’ s a significant step forward,” said Boronkay.“ It will provide a clearer picture of liquidity without firms having to buy data from multiple exchanges. This could drive better execution strategies.”
Mergers and acquisitions also continue to reshape the industry.“ Consolidation can provide efficiencies, but it also raises questions about competition and access,” added Boronkay.
M & A has been most prevalent in the exchange and trading venue sphere for the last 12 months, a pattern that is potentially set to continue on through the remainder of this year. Among the major deals announced recently was news that SIX Group was set to acquire Aquis Exchange and that Intercontinental Exchange( ICE) had moved to acquire the American Financial Exchange( AFX).
AI: Hype or game changer? It would be hard to explore innovations in 2025 without touching on artificial intelligence. The concept is rapidly becoming a critical component of market infrastructure and its use in trading is increasingly debated at industry forums, though there remains scepticism about its readiness for capital markets.
“ When people hear AI, they jump to Skynet from the Terminator,” said Roche.“ But AI in trading is about intelligent automation. We’ re moving from machine learning-driven execution strategies to AIdriven workflow automation.”
Healey agreed, adding that AI’ s true potential lies in optimising trade lifecycle processes:“ This
34 // TheTRADE // Q1 2025