Hi,
Just a bit of a thought experiment really. In my 15 years in the markets it has changed so much, these are some of the changes i think that made the biggest impact, on me at least, but if we have a crystal ball what will the next 10 years bring?
When i first joined there was a lot of ex pit guys moving to the screens which was a huge change for them. The screens were mostly humans trading with humans (well compared to these days) then from about 2009 it seemed to be entirely machine based trading.
Then after the financial crash the regulations put on banks changed a lot of the flow in the markets, there was less and less block orders going through and volumes traded really went down.
Then in Europe,at least, the MiFID regulations killed a lot of access to leverage, as a professional you need to partner up with firms located outside of the EU to get professional leverage now as the margin rates went through the roof.
Looking forward I think there will be more taxes on traders, a financial transaction tax, purely because traders are easy targets, the media just assumes every trader is a rich sociopath that prints money they click a button with no skill and that's an easy win for politicians to try and raise money here.
I wouldn't be surprised if there will be a lot of new contracts based around eco friendly products, green bonds, solar futures etc.
I think volumes will drop in a lot of traditional products like stocks and bonds as the economy changes, there will be more peer to peer contracts using blockchain etc.
How about you guys? Will trading become a larger and larger part of the world economy? Or less and less as people still try use 2008 as an excuse to totally transform capitalism?
Just a bit of a thought experiment really. In my 15 years in the markets it has changed so much, these are some of the changes i think that made the biggest impact, on me at least, but if we have a crystal ball what will the next 10 years bring?
When i first joined there was a lot of ex pit guys moving to the screens which was a huge change for them. The screens were mostly humans trading with humans (well compared to these days) then from about 2009 it seemed to be entirely machine based trading.
Then after the financial crash the regulations put on banks changed a lot of the flow in the markets, there was less and less block orders going through and volumes traded really went down.
Then in Europe,at least, the MiFID regulations killed a lot of access to leverage, as a professional you need to partner up with firms located outside of the EU to get professional leverage now as the margin rates went through the roof.
Looking forward I think there will be more taxes on traders, a financial transaction tax, purely because traders are easy targets, the media just assumes every trader is a rich sociopath that prints money they click a button with no skill and that's an easy win for politicians to try and raise money here.
I wouldn't be surprised if there will be a lot of new contracts based around eco friendly products, green bonds, solar futures etc.
I think volumes will drop in a lot of traditional products like stocks and bonds as the economy changes, there will be more peer to peer contracts using blockchain etc.
How about you guys? Will trading become a larger and larger part of the world economy? Or less and less as people still try use 2008 as an excuse to totally transform capitalism?
