The buzz at FILS this year reflects the three-year hiatus from in-person events – and the amount of change that has occurred since then.
Discussion between buy-side traders on the Buy-Side Only Innovation Day has been around experience levels of traders on the desk, trader desktop interoperability, and the impact of central bank activity on the markets, all of which make the capacity to handle change more important than ever.
Many heads of trading battle with the ability to run the desk and the ability to change the desk, knowing that several of decades of market experience is useful in order to manage volatile markets, but enhancing quant skill and data literacy requires new blood on the team, and retraining of existing team members. Balancing out skills in order to handle strategic and tactical goals is key.
The capacity to onboard new technology has been significantly enhanced by the rise of desktop interoperability tools such as Glue42, Cosaic and OpenFin. This has proven an advantage as markets more electronic/automated trading has evolved, because the previous model of using multiple systems independently was too unwieldy when it came to effecting gradual change in the trading desk.
Finally, as markets are roiled by a sell-off and rising rates, questions are being asked about the confidence in the Federal Reserve. If confidence is lost in the central bank's ability to calm markets – and for many it has been – there are questions about how the wider market may respond, and the potential volatility that might create.
©Markets Media Europe, 2022
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