A report by Greenwich Associates says many of the most important changes in financial market structure in 2017 will be driven by two disruptive factors: technology and Trump.
Some of the trends noted in the report are:
- the 'Trump bump' will continue to boost financial markets and the incoming administration will move aggressively to “right size” capital markets regulation;
- a full repeal of Dodd-Frank is not expected, but there are other, potentially radical, changes such as a softening of the Volcker Rule, a revamp or even repeal of Reg AT, increased scrutiny of Reg NMS, a dramatic slowdown in the move toward public reporting of US Treasury trades, and a complete reassessment of the SEC’s ill-fated ticket pilot;
- blockchain will move from proof of concept to reality;
- cloud computing will become so pervasive that it will soon be known simply as 'computing';
- electronic trading will continue to expand in fixed income, and principal trading firms will start leveraging their sophisticated internal platforms by selling technology, providing custom liquidity streams and allowing buy-side firms to completely outsource their trading desks.
The report's author, Greenwich Associates' Kevin McPartland, says: “Of course, President Trump will have no influence on one of the biggest regulatory events in global capital markets: the on-going implementation of MiFID II in Europe.”
Read more in the full article here.
CTMfile take: Some will find this top-10 list reassuring in that it focuses very much on practical developments in technology and financial markets. In any case it is worth a read.
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