Equity investors increased the share of trading volumes executed electronically last year, continuing the evolution of the U.S. stock trading business into an increasingly complex, fast-moving technologically driven market structure.
The accelerating pace of change in global investment markets and the institutional asset management industry is forcing asset management firms to reassess long-term strategies and become more flexible in making short-term adjustments to keep their strategic plans on track.
Risk levels and delinquencies are climbing in commercial real estate loans, and U.S. banks are expressing concerns about lending standards in CRE portfolios at levels not seen since the onset of the global pandemic.
Rising interest rates have unleashed a wave of volatility in U.S. mortgage backed securities (MBS) this year. As market participants prepare for projected growth in investment in mortgage products during 2024, buy-side and sell-side firms expect to increase spending on data, AI and other technology to upgrade risk-management capabilities for a more challenging and dynamic environment.
Despite the corporate bond market’s big move towards electronic trading over the past decade, 90% of the market’s biggest trades are still executed via phone or chat. This represents a huge opportunity for trading platforms that offer new tools to facilitate the trading of block orders on the screen.
Proposed changes in rules governing global systemically important banks (GSIBs) could help eliminate the practice of “window dressing” by the biggest U.S. banks.