Trends in Trading Technology 2024

• The Shift From In-house to Vendor-provided Solutions – Several factors are driving financial institutions to move away from developing in-house technology solutions towards adopting third-party vendor solutions. This shift is analysed in the context of cost pressures and the need for advanced, scalable trading systems;
• Automation & Digitisation of Business Logic –This part of the report delves into the transition from automating low-touch execution tasks to digitising the entire trade lifecycle. It discusses how digitisation is transforming decision-making processes and improving efficiency;
• The Growth of the Modular Buy & Build Approach – A combination of off-the-shelf functionality with customisable components typically leads to an optimisation of process automation, reducing system friction and enhancing agility in trading operations;
• The Future of Trading Technology – The final section of the report explores the future of trading technology. It covers emerging trends such as the integration of artificial intelligence and quantum computing and their potential impact on the trading ecosystem.

In exploring those factors, this report shows that while the e-trading systems market – increasingly composed of customised third-party technology vendors – continues to be driven by the digitalisation of trading workflows in response to regulatory constraints and global competition between financial institutions, there is increasing recognition that there remains a role for the experience and market knowledge that humans can bring to market sectors and conditions that require a high-touch approach.