Proprietary trading firms are planning to expand their FX trading operations and increase investment budgets in 2024, according to the the latest Proprietary Trading Management Insight Report from derivatives industry management intelligence platform Acuiti.
The quarterly report, which has been produced in partnership with Avelacom, is based on a survey of the Acuiti Proprietary Trading Expert Network, a group of senior executives at over 100 proprietary trading firms globally and provides insights into the key trends facing the community.
This quarter’s report found that 45% of firms that trade FX were planning to significantly increase exposures in the asset class in 2024. Firms were also planning growth in equity options.
Almost a fifth of firms, mostly from Europe, and which traded cash equities, were planning to decrease exposures in the asset class. In terms of new asset classes, several firms were planning to expand into cash government bond markets.
Investment budgets are also set to increase in 2024 with 63% of firms planning higher than average investments. Firms were most likely to be investing in algorithmic trading tools, connectivity to new markets, and market data.
The report also finds that existing exchange fees are negatively impacting what markets and products firms trade, while awareness of the EU’s Digital Operational Resilience Act, which will come into force in 2025 remains low among affected firms.
Over half of firms that trade equity options meanwhile, are considering trading 0DTE on Eurex, pointing to growth in that product in 2024
