January 4, 2022 | Stamford, CT — The financial services industry got back to business in 2021, but the year was far from “normal.”

Despite these unusual circumstances, “bold bets on bold innovations permeated almost every conversation in 2021, and there is nothing that leads us to believe 2022 will be any different,” says Kevin McPartland, Head of Research in the Coalition Greenwich Market Structure and Technology group.

A new report, Top Market Structure Trends for 2022, from Coalition Greenwich identifies the top trends in market structure and technology that will reshape the industry in 2022, including:

  • The Tokenization of Everything: In 2022, the growth of cryptocurrency trading will be driven not just by the arrival of new investors, but also new assets. In the coming year, we expect an increasingly long list of assets to be “on the chain.”
  • More Blockbuster (and Perhaps Unconventional) M&A: M&A activity in 2022 could get a boost from a new source of buyers: crypto-focused firms using their sky-high valuations to buy traditional financial (TradFi) firms. There has been also chatter about BigTech buying its way into markets for years - that day might finally have arrived. 
  • An Active SEC: The SEC’s list of focus areas in 2022 is notable and includes cryptocurrencies, stablecoins, payment for order flow, ESG standards, non-bank liquidity provider registration, fixed-income trading venue oversight, U.S. Treasury clearing, and enhanced bond market reporting – just to name a few. Everyone in nearly every market will be watching closely.
  • Retail Investors Get the Institutional Treatment: Retail investors will get a technology upgrade in 2022. Going forward, this growing group of investors and traders will get something closer to the “institutional treatment” via new technology and solutions that give them better access to investing strategies, securities prices and markets.

The top trends covered in the report also include a radical increase in market transparency, changes in the price and competitive landscape for market data, standardization in APIs and other technology, mounting competition for industry incumbents from emerging startups, and a potential resurgence for prime brokers.