Embrace what’s next

 

Events over the past couple of years have brought home the importance of preparing for the future while maximizing opportunities today. The industry is changing rapidly, which increases the pressure to keep up and adapt or risk falling short. So how do you embrace this change, and what should you be focusing on now in your planning?

 

In terms of technology, we’re seeing three fundamental shifts:

 

• Increased reliance on data analytics by trading desks
• A developing interest in, and understanding of, digital assets such as cryptocurrency
• And a growth in mobile innovation that is changing how people work

 

An increasingly important consideration is ESG: environmental, social and governance factors. We’re all familiar with ESG investing, which should be a major alpha generator for the next 30 to 40 years, but more and more, a commitment to ESG criteria is equated with increased innovation, seen as inspiring greater dedication in the workplace, and considered part of a company’s very identity.

 

Finally, when it comes trading, we’ve noted a shift in the mix between high-touch and electronic, toward what seems to be an optimal equilibrium. Clients who leaned into high-touch during the pandemic are to a large degree choosing to stay with it.

 

For more insights and ideas, check out the rest of our Trading Insights series.

 

 

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