Home / Business and Economy / Europe's Traders Prioritize Trade, Security
Europe's Traders Prioritize Trade, Security
9 Dec
Summary
- Trade performance and cybersecurity lead European trader tech priorities.
- Post-trade TCA is nearly universal, with 86% of European traders conducting it.
- AI adoption remains experimental, with execution seen as its first application.
European buyside traders have identified trade performance and cybersecurity as their top technology priorities for the coming year. While execution management tools are highly valued for cost scrutiny, newer technologies like AI and alternative data are still in early adoption phases. Post-trade transaction cost analysis (TCA) is nearly ubiquitous, with 86% of traders utilizing it, though its practical value is still debated by some.
The adoption of pre-trade TCA is lower, with a notable gap between analysis and actual execution application, suggesting it's often a compliance exercise. Confidence in AI's impact is cautious, with most expecting it to boost productivity and efficiency rather than displace jobs or directly increase revenue significantly. Execution is seen as AI's most probable initial application within the next two years.
Despite varying levels of trust in TCA outputs and a slow embrace of AI, many traders are leveraging these tools to improve trading outcomes and foster broker competition. The use of algorithm wheels is increasing, offering a more objective method for assessing broker performance and influencing routing decisions.
