WBR Insights - Capital Markets

As we eagerly anticipate the upcoming TradeTech FX USA, we wanted to recap on the phenomenal success of our European event just a few weeks ago. The event commenced with our Buy Side Innovation Day, held on 16th September, this was an exclusive day for 160 buy side participants focused on FX trading innovation. Key sessions included a masterclass on hedging strategies, a keynote on investment tech for smarter trading desks, and panels on execution automation and smart desktop technologies. Participants also evaluated liquidity, data analytics, and workflow technology solutions from top providers like Deutsche Bank, Societe Generale, and Bloomberg, concluding with a drinks reception. Our first main conference day opened with a keynote on European macroeconomic risks and a panel on liquidity challenges. A fireside chat explored integrating crypto into traditional finance, followed by sessions on workflow automation and career development. Panels addressed topics such as pre-trade analytics, the global code of conduct, and the impact of algorithms on liquidity. The day also included discussions on risk mitigation through futures and NDFs, regulatory impacts, and the role of AI and machine learning. The day concluded with a keynote on election impacts and a debate on the future skills of traders. Our final day began with a keynote from Edward Chancellor, addressing the risks of a looming financial crisis. Panels focused on the outlook of the 2025 capital markets and the potential economic impacts of the upcoming U.S. election. Sessions delved into FX trading automation, emerging market access, and rising trends in listed vs. OTC options. Key topics also included the skillsets required for future trading leaders, managing currency risk in global portfolios, and advancing diversity, equity, and inclusion (DE&I) in FX markets. The day concluded with networking lunch roundtables exploring regional and frontier market strategies. To see the full audience breakdown, along with a detailed speaker list, take a look at our event round-up blog: https://lnkd.in/e547RpEy

The hybrid approach to FX liquidity is ushering in a new era 🔀 Recent regulatory changes have significantly reshaped the FX market. Instead of a complete shift from OTC to listed markets, we're witnessing a fascinating approach. In a blog post that formed part of our recent TradeTech FX research report, Eurex dived into this in greater detail. The article unearthed the key elements driving this transformation, including: 🔴 Future-Proofed Markets: Futures offer a way to manage regulatory costs and maintain exposure below relevant thresholds. 🔴 Evolution, Not Revolution: Bilateral relationships remain crucial. Futures integrate seamlessly into existing OTC structures. 🔴 Low-Touch: E-FX desks facilitate easier adoption and integration of futures into existing workflows. 🔴 Electronification: Automated bilateral trading models streamline the process. This hybrid model is opening up new possibilities for market participants, combining the best of both worlds. Eurex is playing central role in this and you can read the entire article and the full report for free👇https://lnkd.in/ezGQ6z-w

How will electronification and automation revolutionise your FX trading strategy?   The FX market is experiencing a dramatic shift, with a clear trend towards the adoption of FX futures. This shift is accompanied by a growing demand for greater electronification and automation of bilateral trading models.   Our latest TradeTech FX report, conducted alongside Eurex, reveals market participants are increasingly seeking automated solutions for block trades and EFPs to streamline operations and mitigate risks associated with manual interventions.   We explored this area in chapter 3 of the report. Some of the key findings include   🔴 Integration of FX futures into OTC FX EMS: Buy-side firms overwhelmingly prefer a unified EMS capable of managing both FX futures and OTC transactions. 🔴 Preference for block trades and EFPs: Respondents expressed a strong preference for direct trading models with FX dealers leveraging block trades and EFPs to access OTC FX liquidity while maintaining bilateral relationships. Nearly 70% favoured block trades, and 54% preferred EFP execution models.   As the market continues to evolve, it's clear that electronification and automation will play a crucial role in driving efficiency and transparency.   Are you ready to embrace these changes and stay ahead of the curve in the FX market? If so, download the full report for free:https://lnkd.in/ezGQ6z-w

Is your FX trading ready for the future?   As we know from our latest TradeTech FX report, buy-side firms are increasingly turning towards FX futures.   But another key finding from the survey revealed an interesting trend. We surveyed 120 of the leading lights in the industry to find out how and why they are keen to embrace FX futures. They told us that their firms are actively seeking to automate and streamline their FX trading operations. This includes a growing interest in integrating FX futures into their existing OTC FX execution management systems (EMS). By consolidating trading activities onto a single, efficient platform, firms can reduce operational risks and improve overall efficiency.   Some of the highlights from the survey, conducted alongside Eurex, include:   🔴 Nearly two thirds of respondents find CLOB trading to be sufficiently automated. However, there remains a gap in automation for bilateral execution models.   🔴 There is a clear preference for executing FX futures via OTC FX EMS such as 360T, Bloomberg FX GO / RFQe and FX Connect. This highlights the desire for a streamlined workflow and the convenience of managing all FX activity within a single platform.   🔴 A significant number of respondents (47%) identified holistic service offerings as the most important consideration when it comes to choosing a derivatives exchange for FX futures.   Read the full report for free here: https://lnkd.in/ezGQ6z-w

If you have read part one of our recent TradeTech FX report, you'll know that buy-side firms are increasingly turning to FX futures.   Not had the chance to read it yet? Download it for free here: https://lnkd.in/ezGQ6z-w   In part two, we attempted to take a peak into the future, unearthing the trends that will shape the industry for years to come. Working alongside Eurex, we carried out an exclusive survey of 120 leaders from buy-side firms across the globe. It revealed:   🔴 A significant shift towards FX futures. 55% of respondents aim to do so in the immediate future, with 23% planning to in the next 12 to 24 months.   🔴 Ensuring regulatory compliance is the top priority for participants when it comes to choosing FX futures instruments. However, 53% prefer trading FX futures directly with FX dealers. This highlights the importance of sustaining bilateral relationships.   🔴 During a time of market uncertainty, respondents cited liquidity, currency pair selection and fee structures as the key factors for making FX futures attractive.   This is just a glimpse into the powerful insights unearthed from our exclusive survey.   Download it now to get the full report for free: https://lnkd.in/ezGQ6z-w

As revealed in our TradeTech FX report, buy-side firms are embracing the use of FX futures. Our exclusive research conducted alongside Eurex, also highlighted another key finding that goes hand in hand: Firms are seeking are seeking to automate and integrate their trading processes.   According to a survey of 120 of the most senior leaders in the industry: 🔴 Market participants want greater automation for block trades and EFPs. 🔴 There is a strong preference for integrating FX futures into OTC EMS. 🔴 A unified EMS capable of managing all FX transactions is in high demand.   So why the change? The benefits are clear. Automation can streamline workflows, reduce operational risks, and improve efficiency. For instance, by automating block trades and EFPs, firms can minimise manual errors and ensure faster, more accurate executions.   Additionally, there's a growing preference for integrating FX futures into OTC EMS. This integration can create a unified platform for managing the entire spectrum of FX transactions, from spot to derivatives. While not all platforms currently support this, the demand is evident.   Want to know more? Download our full report to explore these trends in detail and discover how automation and integration are shaping the future of FX trading: https://lnkd.in/ezGQ6z-w

FX Futures - are they the future of FX trading?   Our latest TradeTech FX report, conducted alongside valued partner Eurex, reveals a significant trend. FX futures ARE gaining traction among buy side firms.   In chapter one of the report, we aimed to understand how and why they are being used. Our exclusive survey of 120 of the most senior leaders in the industry revealed: 🔴 95% of asset managers, pension funds, insurance companies, and hedge funds are already using FX futures. 🔴 Nearly 75% conduct up to 30% of their FX operations through futures. 🔴 All respondents plan to increase their use of FX futures in the future.   So why the shift? Factors like enhanced market access, evolving market sentiment, and regulatory considerations are driving this adoption. Plus, the OTC FX market's challenges - like UMR, liquidity, and rising capital costs - are making futures more appealing.   Want to know more?   Download our full report to read every chapter for free: https://lnkd.in/ezGQ6z-w

Did you know that the FX market is undergoing a seismic transformation? Were you aware that FX futures are at the heart of that change?   Our recent TradeTech FX report surveyed 120 leaders from buy-side firms across the globe. Working alongside our valued partner Eurex, we found:   𝗙𝗫 𝗙𝘂𝘁𝘂𝗿𝗲𝘀 𝗮𝗿𝗲 𝗯𝗲𝗶𝗻𝗴 𝗮𝗱𝗼𝗽𝘁𝗲𝗱 𝗮𝗰𝗿𝗼𝘀𝘀 𝘁𝗵𝗲 𝗯𝗼𝗮𝗿𝗱: A massive 95% of respondents are integrating FX futures into their strategies, with nearly three-quarters conducting as much as 30% of their FX operations through these instruments. This shift is driven by factors such as enhanced market access, evolving market sentiment, and regulatory considerations.   𝗔 𝗯𝗶𝗹𝗮𝘁𝗲𝗿𝗮𝗹 𝗽𝗿𝗲𝗳𝗲𝗿𝗲𝗻𝗰𝗲: Asset managers and pension funds favour direct execution with FX dealers for FX futures. This bilateral approach not only provides ongoing access to OTC liquidity but also fosters strong client relationships. Block trades and exchange-for-physical (EFP) solutions are particularly popular among buy-side firms, offering flexibility and efficiency.   𝗘𝗻𝗵𝗮𝗻𝗰𝗲𝗱 𝗲𝗹𝗲𝗰𝘁𝗿𝗼𝗻𝗶𝗳𝗶𝗰𝗮𝘁𝗶𝗼𝗻: Market participants are seeking to automate processes associated with block trades and EFPs, mirroring the automation already prevalent in exchange order books. This is crucial for streamlining operations and mitigating risks. There is a strong demand for integrating FX futures into OTC FX execution management systems (EMS) to consolidate trading activities onto a single, efficient platform.   Do you agree with these findings? Download the full report for free here 👉 https://lnkd.in/ezGQ6z-w

How much do you know about FX futures and how the buy side is embracing them? Our latest TradeTech FX Europe report delves deep into this industry-wide trend. Partnering with Eurex, we surveyed 120 buy-side leaders globally to produce groundbreaking research. Split into three easy-to-digest chapters, our report explores: ❶ An understanding of the use of FX futures: Almost everybody is integrating FX futures into their trading strategies. This chapter examines the proportion of business executed via exchange-traded FX futures, common use cases, and the major challenges faced. ❷ The future of FX Futures: Part two of the report looks at why FX Futures have emerged as a critical tool for market participants navigating complex landscapes. It also reveals why many firms plan to increase their use of FX Futures in the next 6-12 months. ❸ Low-touch and electronification: The shift towards FX futures has accelerated the desire for enhanced electronification and automation of bilateral trading models. The final chapter of our report explores preferred methods for accessing FX futures liquidity and how industry leaders view the current state of automation. Download the report in full for free here: https://lnkd.in/ezGQ6z-w

Do you want to know how FX market participants are embracing FX futures? Well, for our latest TradeTech FX EU report, we interviewed 120 leaders from buy-side firms worldwide, so you can do exactly that. Working alongside Eurex, our survey shed light on the pressing issues and emerging trends shaping the FX landscape. The report is a three-part journey that examines: 💱 How buy-side firms are leveraging FX futures to gain a competitive advantage. 🔮 What the future holds and the key factors making FX futures an attractive proposition. 📈 The rise of low-touch execution and electronification in the listed FX derivatives markets. The report is a powerful tool for anyone looking to understand how their peers are unlocking the power of FX futures. And you can read it in full for free here: https://lnkd.in/ezGQ6z-w