Published On: Tue, Jan 15th, 2013

Will 2013 Be a Better Year for Asia’s Electronic Trading Industry?

Question:
Will 2013 Be a Better Year for Asia’s Electronic Trading Industry?
Purpose:
At this time of year we look ahead to what the future might offer. 2012 was a tough year for electronic trading in Asia so we wanted to know if people expected much the same this year.
Results:

Will 2013 Be a Better Year for Asia's Electronic Trading Industry?

Will 2013 Be a Better Year for Asia’s Electronic Trading Industry?

Analysis:
Without doubt 2012 was another tough year for electronic trading. Anaemic volumes in low volatility markets, undertowed by the global economy, made it a challenging year that saw headcounts in the front office continue to decline. Will 2013 be a better year for Asia’s electronic trading industry? We asked the industry with a poll at our website to see what they thought.With a whopping 42.86% voting ‘No, not really’ electronic trading in Asia (and certainly globally) looks to continue to grind forward this year. Another 9.52% said the status quo will be maintained with much the same outlook this year as last. There were 4.76% in the doomsayer camp proffering market conditions would be much worse. We do not know how much worse it can get than what we are seeing at desks across Asia these days. This is just not a sell-side phenomenon. Buy-side firms are reducing heads on the trading desk too and asking brokers to do more of the heavy lifting within the trading process.Perhaps this shift of labour to electronic trading desks is what led those who voted ‘Yes, somewhat better’ at 38.19% and the overly optimistic 4.76% who believe next year will be much better. We are inclined to view 2013 as year in which the industry should turn around, barring any regulatory time bombs blowing up confidence. On the macro level it looks like Europe is going to survive its crisis and offer some measure of stability, although they are not out of the woods yet. The US has the Dow approaching all-time highs, job growth is moving in the right direction and domestic debt levels are declining. If the US returns to consumption and China can continue to grow a middle class of consumer then 2013 does look promising; that is the light at the end of the tunnel.

About the Author

-

IRP Journal

IRP Journal

Sponsor

OPINION POLL

Poll results are published in our Weekly Newsletter -->
subscribe
All Rights Reserved WIld Wild Web Limited