The JP Morgan annual fixed income, commodity and currency (FICC) e-Trading Survey has found that inflation is expected to have the greatest effect on trading conditions this year, cited by 48% of respondents.
Market economic dislocation and the pandemic were equal second place at 13%. Liquidity availability was the top concern for traders at 35%, for the sixth year in a row, with workflow efficiency (21%) and best execution requirements (12%) also ranking highly.
Respondents cumulatively ranked access to liquidity, developments in financial market technology and market data access will be their top market structure concerns this year.
Scott Wacker, global head of FICC sales said, “In the last two years we have seen people moving towards the working from home environment and remote access to liquidity and technology was super important but liquidity was quite sparse.”
Price consistency was the top priority when selecting a liquidity source, rated by 62% of respondents.
Less than half (48%) of credit trading volumes were predicted to be traded via electronic channels by respondents against 52% for rates and 69% for FX.
While 78% were expecting to increase electronic trading across asset classes, 38% were also expecting to increase voice trading over the coming year.
