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Acuiti’s research – commissioned by MIAX – included responses from senior executives across 94 proprietarytrading firms, hedge funds, banks and interdealer brokers, as well as the main futures commission merchants ( FCM ) that serve the derivatives market.
Connectivity costs ranked top out of five key considerations when connecting to a new market for proprietarytrading firms, while hedge funds and bank execution desks ranked it second after preferred brokers providing access.
Joining the industry after graduating from business school at the age of 20, Papanichola has an impressive track record that spans across five hedge funds and two banks. Papanichola began his career at interdealer broker, GFI, however quickly realised the environment wasn’t the one for him.
As highlighted in Acuiti’s report – which included responses from senior executives across 94 proprietarytrading firms, hedge funds, banks, interdealer brokers, and futures commission merchants (FCM) that serve the derivatives market – 2022 saw a surge in interest in volatility trading from the market.
“Increased central clearing can also reduce clearing costs and credit risk by incentivising direct participants to submit more balanced portfolios that have a lower risk profile and thus carry lower clearing fund and liquidity facility requirements.” Rowe Price.
While fingers of blame are being pointed in each direction, the bottom line is asset managers are now facing operational challenges, the notion of pre-fundingtrades and balancing settlement security with best execution obligations. I’m not seeing it yet. That cannot be seen to be a positive outcome.”
Speaking to The TRADE, Dean Gray, head of EMEA outsourced trading at Jefferies, explains: “It has been well documented that the past few years have seen a significant shift in the mindset, especially of the larger funds, towards the adoption of outsourced trading. were in $50-100 billion and another 2.5%
These measures included mandates for constraints on proprietarytrading (known as the Volcker Rule), and enhanced supervision of derivatives markets, as well as increased capital reserves. These measures aim to mitigate liquidity risks and bolster banks’ ability to meet their obligations during market disruptions.
For more information on the various providers in the EMS market, check out The TRADE’s annual survey. Bloomberg Terminal Up next and needing little introduction is the Bloomberg Terminal, Bloomberg’s data and proprietarytrading platform. Some venues, such as Aquis, banned HFT on their venues as part of their USP.
In 2022, CME Group saw a record year for its exchange-listed foreign exchange products, which was followed by a record day for its FX suite of products in March this year, trading $296 billion notional in one day across over three million contracts.
Traditionally, only quant trading firms were at the forefront of the data race, but this is changing. Non-quant firms are looking to use alternative methods to improve trading outcomes, monitor risk and performance, improve alpha generation and broker selection, and gain a competitive advantage.
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