In 2016, the financial markets industry is undergoing rapid change. Specifically, as the use of sellside hybrid agency/principal trading models for fixed income and FX markets grew in recent years, it became necessary for many market participants to update their original pre-trade risk controls practices. Increasing dependency on algorithmic trading systems poses undue risk to healthy market functioning. Additionally, the adoption of hybrid models and the commoditisation and standardisation of access to the infrastructure and e-trading technology used across multiple different trading venues marks a drastic industry shift.
GreySpark believes that the establishment of consistent operational and governance processes will help buyside firms and sellside market-makers prevent against risk in the form of human or technological error. This updated report will market participants with the awareness and know-how necessary to remain one step ahead of market competitors and regulators in their attempts to develop a string of pre-trade risk controls.
