JP Morgan Survey Finds FICC Traders Expect to Increase Electronic Trading in 2022

Electronic and algorithmic trading methods in the FICC markets are expected to continue to surge in the year to come, JP Morgan’s annual FICC e-trading survey has found. Just under 80% of the traders surveyed expect to increase electronic trading in 2022, followed by 63% expecting an increase in algorithmic trading. The use of APIs, multi-dealer and single-dealer platforms is also likely to rise, with 69% of FX traders already using or expecting their use of them to increase, followed by just over 50% of futures, commodities and rates traders. Traders expect mobile trading applications to be the most influential in 2022, with a third of those surveyed predicting that they would shape the market most heavily in the year to come, followed by 25% supporting blockchain and 25% predicting that artificial intelligence and machine learning will have the most influence. When asked their top market structure priorities for the year to come, over half of the traders surveyed said the integration and set up of execution management systems was their top priority, followed closely by workflow automation and access to streaming prices and the ability to aggregate. Nearly half of traders predict inflation to have the biggest impact on markets in 2022, while liquidity availability maintains its top spot for the sixth year running as the top daily trading challenge. When selecting a liquidity source, 62% say price consistency is the most important criteria, up from under 50% of those surveyed in 2021. JP Morgan surveyed 718 institutional and professional trader respondents, up from 260 last year.