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Now in its fifth year, the annual J.P. Morgan e-Trading survey collated the views of institutional and professional traders on trends for the year ahead, including how their working location and execution style have changed in a year like no other.
The survey was conducted in December 2020, all results below reflect views at that time.
Traders predict that the Global Pandemic will have the biggest impact on the markets in 2021.
Question asked: Which of the following potential developments do you think will have the greatest impact on the markets in 2021?
Liquidity Availability remains the top daily trading challenge for traders for the fifth year in a row. The new addition of Remote Working comes in the top five.
Question asked: Which of the following will be your single greatest daily trading challenge in 2021?
When asked to rate their top three most important criteria when selecting a liquidity source, Price Consistency, Availability During Volatile Markets and Response Times remain the top three responses consistent with previous year responses.
Question asked: What are the three most important criteria that you use when selecting a liquidity source?
Banks remain the top liquidity source that traders connect to directly for the third year in a row.
Question asked: Which liquidity sources do you connect to directly?
Mobile Trading Applications are predicted to be the most influential in shaping the future of trading over the next 12 months, with artificial intelligence and machine learning taking the lead over the next three years.
Question asked: Which of the following technologies will be most influential for shaping the future of trading?
When asked about artificial intelligence and machine learning, traders agreed that they:
Question asked: To what extent do you agree with the following statements regarding the use of artificial intelligence and machine learning?
When asked "What percentage of your FX trading is/will be done via algorithmic orders?", traders predict that an additional 15% of their FX trading will be done via FX algos over the next two years. This ongoing increase is reflected in our own client FX volumes which are up 46% YoY*.
*Total J.P. Morgan Client Algo Volume traded Jan - Dec 2019 vs. Jan - Dec 2020
The top three forms of data that are the most helpful in supporting execution objectives.
Question asked: What forms of data continue to be the most helpful in supporting your execution objectives?
Respondents reported that Predicted and Real-time Market Conditions are the most useful data tools across their top three choices. Key Performance Benchmarks took second place across traders’ top three. This was ranked second least important in the survey last year.
Question asked: Please rank your top three most useful data tools in order of preference.
Following an increase in electronic trading volumes in 2020, what does 2021 and beyond look like?
We asked traders, "What percent of your trading volume is/will be through e-Trading channels? This includes API, multi-dealer platforms and single-dealer platforms?".
Question asked: What percent of your trading volume is/will be through e-Trading channels? This includes API, multi-dealer platforms and single dealer platforms?
Rates traders predict the biggest increase in their electronic trading volumes over the next two years, followed by Credit and Commodities.
Between March and June 2020, 77% of respondents worked from home, for an average of four days a week.
During this time, 21% of respondents reported a change in their execution style, and reported that their execution style changed in the in the following way:
Question asked: How did your execution style change?
This year, 55% of those respondents that answered are expected to work from home for an average of four days a week.
18% of respondents reported that their execution style will continue to change going forward, and 100% of these respondents reported a predicted increase in electronic trading.