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.”
The buy-side firms want to improve the executions that they receive from the dark liquidity pools and do not want regulators limiting their access to anonymous trading, said Richard Johnson while hosting a webinar on the topic.
There’s no separating transatlantic rivals Barclays and JP Morgan at the summit of Europe’s fixed income market, according to consultants Greenwich Associates, with Citi in third.
Asset managers are likely to cut the bonus pool by 10% this year, and are looking for other ways to cut costs going into 2017 – most likely through headcount reductions, according to a new report by Greenwich Associates and Johnson Associates.
Hedge fund pay is expected to fall by 10% this year as firms face pressure to cut fees, according to a report from Greenwich Associates.
