The Future of Trading? | The Big Conversation | Refinitiv

TL;DR

As technology advances and the COVID-19 pandemic accelerates changes in trading, the future of trading will involve automation, AI, and data analytics. Working from home will become the norm, and both humans and machines will play a crucial role in trading.

Transcript

Louisa Bojesen Already before the Corona pandemic, mammoth changes have been happening across trading desks given the onset of new technologies. In this week's The Big Conversation, we look at the future of trading. Hi, everybody, I'm Louisa Bojesen, and welcome to this week's The Big Conversation. While traders have been adapting to automation and... Read More

Key Insights

• 🎰 The future of trading will involve a seamless union of humans and machines, with roles for both.
• 💦 Working from home and access to trading tools will become more prevalent and sustainable.
• 😃 Traders will need to have skills in big data analysis, augmented intelligence, machine learning, and programming.
• 😒 Access to quality data and the ability to use it will be crucial for traders.
• 🤽 The playing field in trading is skewed towards firms with more resources and access to data.
• 🖐️ Analytics and data-driven decision-making will play a significant role in the future of trading.
• 😶‍🌫️ Data strategies and the ability to leverage cloud technology are essential for successful trading.

Questions & Answers

Q: How is the future of trading being disrupted?

The future of trading is being disrupted by emerging technologies such as AI and machine learning. Traders need to be able to bring together different types of data and run complex mathematical analyses to make informed decisions.

Q: What will be key to making working from home sustainable in trading?

Having remote access to trading tools and interconnectivity between different systems will be crucial for successful trading from home. Cloud-based solutions and seamless data accessibility will enable traders to trade and monitor positions with ease.

Q: Does day trading pose a threat to institutional trading?

Day traders can have an impact on stocks and market behavior, especially in strategies involving heavily shorted stocks. Institutional traders need to understand day traders' behaviors and factor them into their decision-making processes.

Q: Are data strategies in place for traders?

Many traders have data strategies in place, but they are continually updating and adapting them. They are looking for tools and technologies that make data easily usable and accessible for analysis and decision-making.

Summary & Key Takeaways

• Traders have been adapting to automation, AI, and quantitative trading for some time, but the COVID-19 pandemic has expedited these changes.

• The future of trading will involve smart platforms, algorithms, and the use of machine learning to analyze large amounts of data.

• Working from home and access to trading tools will become more prevalent, even beyond the pandemic.