The same tailwinds that fueled the spread of transaction cost analysis (TCA) among institutional investors in Europe after the passage of new regulations are expected to arrive in the United States in 2020.
Running a truly global business is inherently complex, and having to operate within multiple layers of redundant regulations is increasingly complex for derivatives market participants.
The combination of macroeconomic volatility, slow economic growth, historically low interest rates, and further KYC requirements has created valuable opportunities for banks.
Brokers have every incentive to maintain execution quality and to continue providing top-notch client service, research and other tools as trading commissions become a smaller part of overall revenue.
Speculation that machines will replace commercial banks’ relationship managers misses the mark and overlooks a tremendous opportunity for the industry.