With electronic equities trading continuing to rise, a notable proportion of US low-touch desk expect to expand their teams over the next 12-18 months, a new report from Coalition Greenwich has found.
Roughly a third of respondents plan to bolster their algo sales and desk coverage, while a quarter are looking to boost their execution and analytics consulting, on-desk trading assistant, and trade operations or algo support headcounts.
Coalition Greenwich found that the rest have decided to remain steady, however various respondents did indicate that they plan to expand in the longer-term.
With growing innovation in the space, one study participant noted that they expect a reduction in headcount over the long term as desks replace traders with artificial intelligence (AI) as a means of capex reduction. They did however note that the industry isn’t necessarily there yet.
“While optimistic, low-touch traders are still grappling with the challenges of race-to-zero commissions, tightening regulatory requirements and data-driven, buy-side clients. However, like any resilient organism, they have evolved to survive, honing their skills and adapting to the shifting landscape,” said Coalition Greenwich in its report.
“Those who invest in the latest human and technical resources as well as the skill sets needed to succeed will be well-positioned for a bright future. The playing field is wide open, and those who adapt will thrive.”
With ongoing pursuits for innovation and enhancements in equities trading, Coalition Greenwich found that electronic sales traders are more frequently searching for new venues to differentiate themselves.
Almost 40% of respondents emphasised a strong interest in more innovative trading venues, with another 53% showing some interest.
Read more: PureStream: The disruptor venue determined to make waves in the institutional liquidity landscape
Elsewhere in its report, Coalition Greenwich highlighted that “one can no longer talk about the future of electronic trading without mentioning AI”.
The electronic sell-side was found to believe AI will have a notable impact on electronic equity trading in the coming years, particularly in real-time algo optimisation (66%), venue optimisation (47%) and compliance/surveillance (38%).