Liquidity availability and AI are rising in importance for traders across the world, according to JPMorgan’s annual e-trading survey. oneZero is helping clients to optimize their use of liquidity and to leverage tangible AI-based solutions as markets continue to evolve.
JPMorgan’s annual e-trading survey for 2024 has been released, with feedback from more than 4,000 institutional traders in over 65 countries.
Liquidity remained a key concern for the traders who responded to the survey, which is now in its eighth year.
When asked what they expect to be their greatest daily trading challenge in 2024, a growing number of respondents identified availability of liquidity, which ranked only behind the ongoing impact of volatile markets.
“The significance of liquidity availability is creeping back up to regain its number one spot and has increased in ranked importance from 22% to 24% in 2024,” JPMorgan said.
Access to liquidity was ranked as the number one market structure concern by traders in the survey. 31% of respondents identified access to liquidity as their top concern, well above regulatory change at 20%, followed by market data access and costs at 15%.
When asked which benefit of direct trading connectivity is most valuable, respondents identified access to liquidity as the most important benefit at 34%, ahead of reduced execution costs at 23%.
Tackling liquidity concerns
So what can traders do to address their concerns about liquidity?
Adoption of technology that drives intelligent performance and improves liquidity management is the single biggest opportunity to tackle these challenges on a cost-effective basis.
At oneZero we have a 15-year track record of working with clients to deliver multi-asset technology solutions that focus on improving access to liquidity – including modules with analytics that can be seamlessly integrated into existing workflows and processes.
oneZero’s Hub offers unparalleled flexibility in setting trading and liquidity parameters, managing risk in tailored portfolios and incorporating algos that are already used by clients.
oneZero’s data set is also significantly richer than those of direct competitors in the trading technology market, with 4TB of data moved to cloud storage each day.
The richness of the data which oneZero collects and harnesses, combined with quantitative experience within the company, allows us to produce rich and enactable reports for our clients that help them measure liquidity provider (LP) performance, as well as the quality of their own trades routed to LPs, allowing for mutually beneficial conversations and ensuring a healthy, sustainable supply chain of liquidity in difficult market conditions.
oneZero is making significant upgrades to our liquidity management services in 2024. Additional portfolio functionality more easily allows customers to incorporate their own proprietary execution algorithms, while retaining extremely low latencies and benefiting from oneZero’s robust pre-trade controls and backtesting framework.
Our backtesting framework provides a range of analytics features for customers, and is extensively used by our clients to improve liquidity management, such as oneZero’s Maker Pool Replay function, which allows FX traders to test liquidity pool configurations without assuming the risk of real-world implementation.
Expanded RFQ analytics and new Systematic Hedging tools are also delivering real-world improvements to liquidity management to oneZero’s clients.
AI and APIs in action
oneZero’s early-mover status in using AI to provide tangible benefits to trading technology clients fits well with another trend identified in the 2024 JPMorgan e-trading survey.
Respondents were asked which technologies will be the most influential for trading in the next three years. 65% of traders identified artificial intelligence/machine learning as the most influential technology, up from 53% last year, and just 25% in 2022.
oneZero was quick to grasp that for AI tools to be effective they need scalable data sets and our track record of serving trading clients since 2009 has provided a rich data set that cannot be matched by most competitors.
This means that oneZero is uniquely well-placed to analyze client flow and behavior, for example. This analysis allows for a significantly more scalable and efficient understanding of clients’ trading styles and preferences, with the ability to segment the information in a number of ways, ensuring that they are priced and risk-managed optimally.
oneZero’s models allow trading desks to look at their risk management strategies holistically, providing insight into the impact of changes within their strategy and actionable analytics on how to improve profitability.
oneZero’s Client Classification models have brought significant benefits to clients, allowing them to easily segment client pricing and risk management based on their trading behavior and profitability, and allowing sales and customer management teams to rapidly see changes in behavior, engage their customers and make targeted changes to their setup to handle this.
oneZero is also a leader in the second most influential aspect of technology for the next three years that was identified by respondents to JPMorgan’s survey: API integration.
The ability to quickly and efficiently integrate our solutions with existing services and multiple platforms is a major selling point for oneZero. We build our own tools, front-end and reporting system off the same API framework we offer to clients, and have off-the-shelf adapters to a wide range of third-party platforms.
Our modular platform architecture allows clients to choose the option that best suits their own needs and that seamlessly adapts via API to their own legacy systems.
Cross-asset trend towards electronic trading
The JPMorgan survey showed that traders across asset classes expect to increase their reliance on electronic dealing. FX traders predict that their proportion of electronic trading will increase from 65% in 2024 to 73% in 2025, for example. Dealers in other asset classes expect an even faster rise than the 8% increase for FX, with traders in rates and commodities anticipating increases of 9% or 10% by 2025.
As this shift takes place, traders are looking for their technology solutions to become more user-friendly, with greater availability of data and analytics tools.
It also helps to have a technology solution provider like oneZero with multi-asset class capabilities that support electronic dealing in both derivatives and spot trades, for example, or in equities as well as markets such as FX.
Availability of data and analytics
When asked which trading platform features are most valuable, apart from pricing and execution, 19% of respondents identified user-friendliness as the top priority. This was followed by availability of data at 18% and analytics at 15%.
This is another focus for oneZero, where we have been repeatedly recognized with industry awards that reflect our market-leading quality of analytics insights.
oneZero also wins multiple awards for our core trading technology functionality. We recently won a record-breaking sixth consecutive annual award as Best Connectivity Provider in the Finance Magnates London Summit Awards, for example.
Other awards last year included Best FX Technology Provider, Best FX Aggregator, Best Liquidity Provider and Best Hosting & Connectivity Provider.
JPMorgan e-trading survey trends and oneZero
The trends identified in JPMorgan’s annual e-trading survey are clear: traders want improved liquidity, integration capabilities, AI and data analytics functionality from their technology solution providers.
oneZero is committed to meeting these needs for multi-asset traders in all regions by delivering intelligent performance that adapts to changing markets and new technology opportunities.
Service quality is key to this commitment.
oneZero’s Customer Success, Trade Operations and Institutional Product teams are equipped and enabled to help our partners get the most from our systems.
Whether you’re using our industry-leading functionality, or leveraging the oneZero engine to differentiate your business, all our clients are backed by global 24/7 follow-the-sun client support.
Over 250 clients already rely on oneZero to tackle the trading challenges of the future and deliver intelligent performance today.
To find out how we can help you contact
