The transition from T+2 to T+1 settlements marks a pivotal moment in the equities market, altering the very structure and operational dynamics that have long been established.
The technological evolution of the trading desk has not only reshaped trading operations but also redefined the skillsets that are pivotal for success in this domain. As we stand on the brink of a tech-driven future, traders and industry leaders are confronted with both immediate challenges and existential questions about the role of traders in the upcoming years.
The buy-side and sell-side are perpetually in pursuit of new technology to streamline their work and liberate time for strategic initiatives. Amidst the fragmentation of Order Management Systems (OMS) and Execution Management Systems (EMS), traders often grapple with multiple systems, each serving a distinct purpose. The quest for integration and consolidation is palpable, with a discernible shift towards systems that can seamlessly interoperate.
The pursuit of scarce liquidity and the imperative to demonstrate best execution and cost efficiency to Portfolio Managers and investors have become pivotal for the buy-side.
After the latest financials showed the US economy shrank for the second quarter in a row, many people are asked whether the country is officially in recession or now. As the economy continues to contract, we can expect to see a fall in stock market prices as the revenues of firms decline.
Back in June 2021, US Securities and Exchange Commission chair Gary Gensler laid out his proposals for new rules and regulations for the financial market in what could be the biggest change to the market in decades. The main motivation for this change occurred in January of the same year when Wall Street was rocked by the so-called Reddit Rally....
It seems like forever ago when Bitcoin first entered the investment lexicon and it’s certainly been a rough ride since those times. Originally hailed as the future of finance, the landscape has since been mired in reports of fraud and other criminal activity, environmental concerns regarding the blockchain technology which makes it possible, and extreme volatility in the perceived value of the tokens.
Ever since Bitcoin first exploded onto the scene over a decade ago, blockchain technology has been at the fore of discussions across many industries and, while cryptocurrency’s potential to transform the world of finance seems less likely than ever, there are still plenty of advocates who claim the tech which underpins it has a future.
Despite access to liquidity having improved considerably over the last few years, equities traders are still rating sourcing cash, heavily traded shares, money market instruments, and other forms of liquidity as their number one challenge moving forwards.