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13th November 2023 | Press Releases

Proprietary trading firms plan FX expansion and increased investment in 2024

The Proprietary Trading Management Insight Report is free to read for executives at prop firms, to request your copy visit https://www.acuiti.io/q4-2023-proprietary-trading-managers-insight-report/ 

London – 13 November 2023: Proprietary trading firms are planning to expand FX trading and increase investment budgets in 2024, the latest Acuiti Proprietary Trading Management Insight Report has found.

The quarterly report, which is released today and is 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, that 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.

Other key findings in this quarter’s report:

  • Rising exchange fees are negatively impacting what markets and products firms trade
  • 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 are considering trading 0DTE on Eurex, pointing to growth in the product in 2024

“The report reveals that proprietary trading firms are willing to invest in improving their connectivity to markets, including exploring new ones,” says Aleksey Larichev, Managing Director at Avelacom.

“This shows their plans to expand and optimize their current trading setups. It’s a positive sign that the market is in good shape and working to stay competitive. For Avelacom it means opportunities to help more trading firms gain a competitive edge with our low-latency connectivity and IT infrastructure solutions.”

Will Mitting, founder of Acuiti, said: “Proprietary trading firms are looking ahead to 2024 with optimism and planning expansion and increased investment.

“However, exchange costs are an increasing burden for many firms, which are trading fewer products and markets than they would if fees were lower.”

Download full report here


For more information, contact Nastja Konic at Acuiti

Tel.: +44 (0) 203 998 9190

Email: nastjakonic@acuiti.io


About Acuiti

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.

About Avelacom

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.