As McPartland recalled, 5 milliseconds was considered a fast execution speed 10 years ago. Today, 5 milliseconds is positively glacial compared with 50 microseconds, which is about how long it takes for an exchange to match a trade.
Fixed-income dealers are spending as much as $20 billion a year on RegTech to help them comply with the raft of regulations covering their trading desks, according to a new report from Greenwich Associates.
"MiFID II is forcing dealers to upgrade their technology," said Kevin McPartland.
"The more you sell, the less valuable it becomes,” McPartland said. “Finding that middle ground is a real business challenge.”
SEC maker-taker pilot program seen as more likely as rebate opponents grow.
Greenwich Associates estimates that 15% of the finance industry’s jobs are at risk of being lost to AI-driven alternatives.
Citigroup Inc. bleibt in diesem Jahr die führende Bank im Bereich Fixed Income für die Region Asien-Pazifik ohne Japan und konnte ihren Marktanteil noch ausbauen. Das geht aus einer Studie von Greenwich Associates hervor.
As banks divert their attention and available funds to regulatory burdens, fixed-income traders have become less able to “effectively service” their clients, hurting profitability, Greenwich Associates said.
Richard Johnson expects that the CME Group may have a leg up on its competition due to most major players already have accounts with the futures exchange.
Global institutional assets under management (AUM) for passive strategies grew to 22 percent of total AUM in 2015, from just 14 percent in 2008, according to Greenwich Associates’ Trading the Auctions report.
