Greenwich Associates estimated that the annual pool of cash equity commissions paid by institutional investors to brokers on U.S. equity trades in 2016 to be $9.65 billion. This amount is down more than 30 percent from its peak in 2009.
“I would reckon it won't happen now,” said Richard Johnson, vice president, market structure and technology at Greenwich Associates. “The incoming administration will change everything.”
Blockchain solutions will not go mainstream in 2017; however, interest in the technology has garnered significant investment in 2016. According to Greenwich Associates, global financial institutions and technology providers spent more than $1...
“Putting aside the potential softening of some US regulations, the cost of capital will continue to hit banks and, as a result, their customers,” added McPartland. “Investors will therefore be forced to look harder at more cost-effective cleared...
The percentage of FX business done through algorithmic-based trading across all institutions rose from 27% to 33% between 2014 and 2015, according to the Greenwich Associates’ 2015 Global Foreign Exchange Services Study.
In an online blog Kevin McPartland, head of research for market structure and technology at Greenwich Associates says: “Investors will therefore be forced to look harder at more cost-effective cleared products. Product selection will expand...
Many of the most important changes in financial market structure in 2017 will be driven by two disruptive factors: technology and Trump.
"If the cost of holding positions was reduced back to a point at which making markets becomes more economically attractive, the entire market would benefit," says Kevin McPartland. "A serious scaling back of Volcker via the Trump administration...
“The importance of security and compliance has grown dramatically over the last few years,” Kevin McPartland said. “Compliance concerns and reputational risk is more important now than it ever was.”
“Domestically, the market has been tough for small regional players,” says Greenwich Associates consultant Andrew Grant. “The one place you do not want to be is in the middle, without a strong geographic or product specialization.”
