Problems with the application process for SBA loans have shaken companies’ confidence that the new Paycheck Protection Program will deliver the funding they need in time to survive the COVID-19 crisis.
In the same way that COVID-19 social distancing rules have fueled an explosion in the use of video meeting, remote work requirements are triggering a huge spike in demand for digital banking services among companies across Asia.
More than 80% of the 415 small businesses ($1-$10MM) surveyed by Greenwich Associates this week have applied for a loan under the SBA’s new Paycheck Protection Program. That volume represents a massive challenge that could threaten to overwhelm both the banks that will manage these applications, and the pool of funds allocated for these loans by the U.S Congress.
Although algorithmic trading has been slower to gain traction in foreign exchange than in equities and other classes, it will continue to capture volume in FX.
Although headcounts among institutional trading desks held steady from 2018 to 2019, it’s clear that increases in buy-side trading desk budgets are being driven by technology spending.
The same tailwinds that fueled the spread of transaction cost analysis (TCA) among institutional investors in Europe after the passage of new regulations are expected to arrive in the United States in 2020.
Running a truly global business is inherently complex, and having to operate within multiple layers of redundant regulations is increasingly complex for derivatives market participants.
The combination of macroeconomic volatility, slow economic growth, historically low interest rates, and further KYC requirements has created valuable opportunities for banks.