The Proprietary Trading Management Insight Report is free to read for executives at prop firms, to request your copy visit https://www.acuiti.io/acuiti-proprietary-trading-managers-insight-report-q3-2022
London – ## August 2022: Listed interest rate derivatives and commodities futures and options have been the best performers for proprietary trading firms in the first half of 2022 as fears of a recession and soaring inflation caused volatility across global markets, this quarter’s Acuiti Proprietary Trading Managers’ Insight Report has found, conducted in partnership with Avelacom.
The report, which is based upon a quarterly survey of the Acuiti Proprietary Trading Expert Network, a group of over 100 senior proprietary trading executives from across the globe, found that 58% of firms reported commodities trading to be either exceptionally or very profitable while over half of respondents said the same for listed interest rates.
Crypto currency trading also performed well with over half of firms reporting strong profitability in that asset class.
The recent falls in crypto prices have not deterred traditional proprietary trading firms from entering the market. Overall, 22% of respondents said that they had accelerated plans to enter the market as a result of the volatility. 13% had increased trading and just 3% had exited the market.
Overall, the sustained volatility experienced during the first half of the year has benefitted proprietary trading firms with 76% of Acuiti’s Proprietary Trading Expert Network reporting a better than average six months.
This quarter’s report also analysed technology set ups at proprietary trading firms and found significant levels of inhouse development across a range of functions.
Respondents also gave their views on how well third-party vendors served the proprietary trading market. The report found strong demand for more specialist risk management software that reflected the complexities of proprietary trading.
“Trading firms are looking to invest in their technology set up to take advantage of the recent market volatility. Ultra-low latency trading firms in particular have unique technology requirements. This creates opportunities for third-party vendors that can serve their needs,” said Aleksey Larichev, CEO of Avelacom.
Sentiment among senior proprietary trading executives fell slightly last quarter but remained high as managers maintain expectations of continued volatility in the second half of the year.
“Volatility has remained elevated during the first six months of 2022 and this has increased the requirement for firms to hedge and reposition,” said Will Mitting, founder of Acuiti. “Proprietary trading firms provide liquidity to listed markets and their role is particularly important during times of market stress.”
Download full report here: https://www.acuiti.io/acuiti-proprietary-trading-managers-insight-report-q3-2022
For more information, contact Nastja Konic at Acuiti
Tel.: +44 (0) 203 998 9190
Acuiti is a management intelligence platform designed to provide Senior Industry Professionals in the Derivatives Industry with high-value insight into industry-wide performance and business operations. Acuiti provides a platform through which our exclusive network of Senior Industry Executives can share and source information on day-to-day operational challenges, providing them and their management teams with increased transparency and in-depth analysis to make more informed decisions and benchmark company performance. Financial Institutions benefiting from our services include Banks, Non-bank FCMs, Brokers, Proprietary Trading Firms, Hedge Funds and Asset Managers.
Avelacom’s low latency connectivity, IT infrastructure and data solutions improve market making, arbitrage and liquidity aggregation strategies, all of which are highly sensitive to latency. It provides access to 80+ liquidity centers offering best-in-market latencies and 99.9% uptime. Covering a wide variety of exchanges including equity, FX, commodity, crypto and derivatives, Avelacom’s solutions are asset neutral.
The company is particularly well known for offering the lowest latencies to/from APAC, LATAM, the Middle East, South Africa and Eastern Europe. The company’s strength comes from its own global network based on both fiber and wireless technologies.