A surge in equity market valuations and a rebound in trading activity provided a major boost to Asia’s brokers in 2017. However, this is tempered by worry about the looming impact of MiFID II, which could make 2018 a messy year.
New MiFID II rules on payments for investment research that went into effect January 3 have already shrunk the market for European equity research by an annual $300 million, and the ultimate impact of the regulations likely won’t be evident before the end 2018
2017 was politically strange, economically strong and eerily calm—but in the new year, according to the Greenwich Associates list of Top Market Structure Trends to Watch in 2018, technology dominates.
U.S. Treasury market participants and regulators alike are surprisingly in the dark about some of the market’s inner workings—especially when it comes to the rapid changes brought on by the advance of electronic trading.
Liquidity from electronic market makers has become an integral part of the U.S. equity market, but the firms that deliver it remain largely unknown to many institutional investors whose trades often involve these little-understood firms. This opacity has created a level of fear among investors about the quality and reliability of electronic market makers.
There are significant economic benefits from switching from traditional OTC FX trading to FX futures, according to a new report from Greenwich Associates.
Asset management professionals are enjoying a strong year in terms of compensation, but these favorable conditions might prove a brief respite. Industry cost constraints are already starting to affect compensation and will impact many more asset management professionals in 2018.
Fixed-income dealers are spending as much as $20 billion a year on RegTech (regulatory technology) to help them comply with the raft of regulations covering their trading desks.
The mood among fixed-income dealers in Asia is decidedly upbeat. Trading volumes are on the rise—fueled by strong flows in G3-denominated Asian bonds, new issuances and growth in flows in local currency markets and a surge in business from China. Together, these trends are prompting banks to enter growth mode in Asia.