How will technology transform and disrupt the trading environment? A new report explains how.

A new report from Greenwich Associates digs deep into the effect of technology on trading:

The market’s current state should be seen as a new benchmark, one that the industry will strive to beat every year going forward. Automated trading, alternative data and real-time analytics are now a given, and we should focus not on their impact thus far but the emerging technology tools that will have the biggest impact in the coming three to five years.

Trading desks must think about both strategic and tactical innovation. The former, which includes sweeping technological developments like

artificial intelligence and cloud computing, are critical to long-term success and profitability—although their impact on the desk’s P&L today or next month remains small.

It should come as no surprise, then, that among all study participants, including strategists and technology professionals, broad, long-term, defensive solutions top the list of impactful tools for the trading desk. Solutions focused on cybersecurity, real-time risk management and trade performance analytics will all be critical to the success of trading desks in the coming years.

The report contains multiple charts and data points, and covers the following:

• TECHNOLOGY’S LEVEL OF IMPACT ON INSTITUTIONAL FINANCIAL MARKETS—OVERALL
• TECHNOLOGY THAT TRADERS BELIEVE WILL HAVE AN IMPACT ON FINANCIAL MARKETS
• GENERATIONAL VIEWS ON TECHNOLOGY’S IMPACT ON FINANCIAL MARKETS
• AI AND DISRUPTION OF TECHNOLOGY
• ARTIFICIAL INTELLIGENCE IN THE TRADING PROCESS
• FIRMS CURRENTLY USING ARTIFICIAL INTELLIGENCE/MACHINE LEARNING IN TRADING PROCESS

Get your copy from Greenwhich Associates by following this link.