Robin Mess, chief executive and co-founder, big xyt
As we approach 2025, the equity trading landscape is set to evolve significantly, shaped by a confluence of technology, market behaviour, and regulatory dynamics. Data continues to be at the heart of this transformation. The ability to harness and interpret vast amounts of market data is becoming critical in navigating increasingly complex and fragmented trading environments.
Artificial intelligence and advanced analytics are playing an increasingly vital role in processing complex datasets and adapting to fragmented market structures. These tools support compliance with evolving regulations and enhance efficient decision-making.
Exchange-traded funds (ETFs) continue to attract widespread interest, particularly the growing segment of active ETFs, which combine cost-effectiveness with flexible investment strategies. This evolution underscores the need for adaptable infrastructure to support the increasing variety and volume of these instruments.
New trading mechanisms are being introduced and the community will need transparency on their impact in order to monitor and engage. The consolidated tape is expected to further democratise access to critical market information, fostering inclusivity and market efficiency.
Finally, the global regulatory landscape will continue to adapt to these changes, emphasising the importance of transparency, fairness, and resilience in equity markets. Adaptability will be essential in fostering innovation and ensuring the efficiency of the markets.
Adam Inzirillo, global head of Data Vantage, Cboe Global Markets
Next year is poised to see significant growth and transformation for market data and analytics, driven by evolving demand dynamics and market forces. A notable trend will be the sustained demand from international investors for access to the US market. Over the past five years, the S&P 500 Index has shown remarkable growth, with an average annual return of approximately 14.9%, attracting global investor interest. Additionally, we foresee further expansion of retail investing across all regions, especially in exchange-traded products—a trend we have already witnessed firsthand in our US markets and expect to gain momentum worldwide.
This will drive the need for access to robust market data to support informed decision-making – all against the backdrop of a continued intense focus on costs – underscoring the importance of competitively priced and efficient services.
Mike Poole, head of trading, Jupiter Asset Management
Expect more M&A activity in the data provider space as we approach regulatory deadlines, in both equities and fixed income. The consolidated tape(s) will drive consolidation and their commercial viability will be predicated on the use cases for the data to drive efficiencies in execution and ultimately better outcomes for clients.
In fixed income, I think we will start to see more transparency in axe distribution and granularity, allowing for greater confidence in bond pricing, potentially helping to continue the recent trend of larger average ticket sizes in high yield – 2025: The ‘Return of the Block’?