Although headcounts among institutional trading desks held steady from 2018 to 2019, it’s clear that increases in buy-side trading desk budgets are being driven by technology spending.
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.