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19th March 2020 | Article

Covid-19 volatility set “to last for months”: Acuiti report

Revenues spike in February but concern grows as virus pandemic grips global markets.

London — 20 March

Senior executives in the derivatives market expect the current volatility to last for months, the latest survey from Acuiti, the management intelligence platform, has found.

Acuiti’s monthly operational and revenue survey this month found that 44% of respondents expected the volatility that is sweeping global markets to last for months compared to 41% who thought it would last for weeks and 8% who said it would last for just days more.

The survey was conducted between 2 and 13 March and also laid bare the extent of the disruption that the spread of the coronavirus was having on operations across the derivatives market.

The survey found that 90% of firms surveyed globally had taken some action to mitigate the impact of the spread of the virus on operations with working from home arrangements and travel restrictions the most common actions taken.

Of those that had taken action, 63% expected the measures to be in place for more than one month with 31% saying they would be in place for two weeks to one month.

Revenues rising

The March Acuiti survey also found that revenues across the global derivatives increased sharply in February as the volatility in global markets drove up volumes.

84% of respondents reported higher year-on-year revenues in February, the highest number recorded since Acuiti began collecting data in March 2019. Of those 58% reported significantly higher revenues.

However, the Acuiti Derivatives Sentiment Index, which measures industry outlook, slumped to its lowest level since it was launched in March 2019 with just 40% of respondents predicting improved conditions over the next three months.

“The derivatives industry is doing its job in these incredibly difficult times,” said Will Mitting, managing director of Acuiti.

“As investors, corporates and end-users reposition their risk exposures and portfolios, executives across the derivatives industry are working around the clock to keep the markets liquid and operational.”

The monthly Acuiti Derivatives Insight Report is compiled from submissions from Acuiti’s network of over 550 senior executives in the global derivatives markets.

The report covers revenues, outlook and is complemented by a quarterly analysis of cost bases, headcounts and barriers to growth.

To apply to join the Acuiti network and get the opportunity to take part in and receive a free copy of the Acuiti Derivatives Insight Report, visit acuiti.io

 

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For more information, contact Will Mitting

Tel.: +44 (0) 203 998 9190

Email: willmitting@acuiti.io

 

About Acuiti

Acuiti is a management intelligence platform designed to provide senior executives with unparalleled insight into business operations and industry-wide performance. Acuiti helps identify market trends, enhance decision-making and benchmark company performance. The platform anonymises and aggregates information from its exclusive network of senior industry figures to provide insightful in-depth analysis.