JP Morgan has conducted a survey of over 400 institutional traders

JPM has run a survey among institutional traders (predominantly FX traders) to gauge their trends for 2018. Here’s some of the results;

Macro issues institutional traders face in 2018

  • 37% Market structure and regulatory changes
  • 27% Geopolitical events
  • 25% Global economic uncertainty
  • 11% Other

Daily trading issues during 2018

  • 37% best execution requirements and precision of execution
  • 29% Availability of liquidity
  • 17% Efficiency of process
  • 16% Price transparency

Other subjects;

  • 61% said MiFIDII will have a day-to-day impact. 39% said it wouldn’t
  • 73% of those in EMEA region said it would impact, 47% Americas, 45% APAC
  • 40% said it would impact their usage of electronic portals
  • 32% said it will alter the types of execution orders they use
  • 32% said it will provide enhanced transparency
  • Only 13% said it will strengthen the services they receive from banks
  • 61% of traders said they would be more likely to use a mobile trading app in 2018 vs 31% in 2017
  • 50% said a barrier to using mobile trading apps would be preventive company policy
  • 34% said their companies prevent any mobile use
  • 74% of average notional trading was executed via etrading in 2018 vs 68% in 2017
  • Traders increased use of Algo trading methods by 24% but it only accounted for 8% of current trading methods. Click-to-trade was 64% of activity. 23% used “Request For Quote”

What’s striking from this survey of institutional traders, is that their issues and worries are pretty much exactly the same as as our on the retail side, especially if you look at the daily issues. There’s always a view from the retail side that institutions have it better than us, and are at a huge advantage but really, they’re mostly in the same boat but on a far bigger scale. As someone who worked for many years on the institutional side, moaning about executions and fills is not something exclusive to the retail side 😉

The full report has some interesting facts on trader’s profiles too.


Ryan Littlestone

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