Proprietary trading firms are positive about next quarter: Acuiti-Avelacom report

Rick Steves

US-based proprietary trading firms are hiring at a faster pace in Asia than in Europe

traders

Acuiti has launched a new product aimed at senior executives from the global proprietary trading community: the Proprietary Trading Management Insight Report.

Produced in partnership with Avelacom, the report provides senior proprietary executives with a benchmark of how their peers are approaching key operational challenges and offers insights on a series of metrics such as exchange growth and new contract launches.

The report also publishes the newly launched Avelacom Exchange Growth Index, a quarter-on-quarter index of the fastest growing exchanges across derivatives and cash equities globally. Also included are profiles of the 25 most traded new derivatives contracts launched in the previous quarter.

Acuiti will build metrics and benchmarks based on requests from members of the network. The launch is the first in a series of focused reports that Acuiti is currently developing.

In Q1 2022 it will launch a Crypto Derivatives report, as well as one for asset managers and FCMs.

Aleksey Larichev, CEO of Avelacom said: “Proprietary trading firms have always been Avelacom’s stronghold for low latency connectivity and IT infrastructure solutions. Our partnership with Acuiti is an important way for us to stay abreast of the latest trends that affect this important client group. This will allow us to develop our product portfolio and to develop low latency routes that access those markets that are most in demand.”

The Proprietary Trading Management Insight Report

The first report includes a breakdown of global hiring trends based on job postings from 58 of the top firms globally and an index of the fastest growing proprietary trading firms by headcount, based on LinkedIn data.

According to thre report, over half of proprietary trading firms now have most staff back in the office on a regular basis, with firms in the UK more prone to work from home than those in the US.

42% of senior proprietary trading executives surveyed reported a drop in productivity when working from home during the Covid-19 pandemic.

The documents also points to US equity options exchange MIAX Emerald as the fastest growing exchange by QoQ volume growth in the inaugural Avelacom Exchange Growth Index: the operator grew volumes by 70% QoQ.  Shanghai Stock Exchange and Shenzhen Stock Exchange came in second and third.

NYMEX’s Micro WTI Crude Oil future was the most successful new contract launch followed by Argentinian exchange MATba ROFEX’s Discount National Treasury Bills future.

The time taken to develop traders is the biggest barrier to growth for proprietary trading firms, with 54% of respondents from the Acuiti proprietary trading network citing this as a major barrier to growth. Separately, proprietary trading executives are positive about the next three months -65% said they were either quite or very positive.

US-based proprietary trading firms are hiring at a faster pace in Asia than in Europe. Overall, 328 roles are being advertised in Asia by 58 of the major proprietary trading firms globally compared with 309 in Europe. North America is still the biggest market for hiring with 789 roles on offer.

 

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