![]() ![]() “Electronification of trading certainly doesn’t mean there is no longer high-touch or low-touch, although we have very much seen a separation of the two with the right level of automation required for each one,” confirmed Laurent Ischi, Automated Intelligent Execution (AiEX) product development, Asia, at Tradeweb. And, while there will always be a certain percentage of high-touch versus low-touch trading taking place in most markets, organisations should be aware of how this ratio could change. Östebo continued: “My experience in the Apac region is that we are only starting to scratch the surface of what’s possible in terms of electronification, with the second step being automation.”Īs markets develop, automation of trading activities is not expected to replace traders, but will rather enhance their ability to navigate an increasingly complex market. ![]() In the US corporate bond market, electronic trading rose by more than 100%, and in Europe this activity increased by 61% between 20, according to figures from Coalition Greenwich. Electronic trading has continued to grow since, fuelled more recently by the impact of the Covid‑19 pandemic. According to the Bank for International Settlements, between 20, daily trading volumes in most fixed income instruments on electronic platforms rose by about 40%. “In Europe, we saw a steep rise, first in electronic trading and then gradually in automated trading ,” said Viktor Östebo, managing director and head of institutional trading, Asia‑Pacific (Apac), at Flow Traders. Evolution driven by electronificationĪutomation has become an invaluable tool for meeting trading needs as electronic trading activity has scaled up. This way, automation frees up traders for more high-touch transactions that benefit from greater human attention and expertise. It can also help with booking trades faster and taking the legwork out of back-end trading processes. The benefits of automated trading include a boost to all-round efficiency, tighter markets and faster response times from the sell side. “There really is a wide array of opportunities to automate different parts of the trade lifecycle.” “From a post-trade perspective, there are many pieces – straight-through processing, application of transaction cost analysis or analytics,” said Joram Siegel, managing director and head of fixed income outsourced trading at Cowen. The trade lifecycle can benefit from automation at every stage, whether in portfolio construction, managing fund flows and data aggregation in the pre-trade stage, or working out how to route and execute a trade most efficiently and effectively. ![]()
0 Comments
Leave a Reply. |