Jonathan Clark, CEO of Luminex Trading & Analytics, spoke with Rob Daly about market structure in 2019 and which skill sets will be most in demand in the new year.
What does 2019 have in store regarding market-structure changes?
Continuing the trend of recent years, we expect that the number of ATS venues will continue to shrink. The barriers to entry, regulatory hurdles, and reputational risk (if you’re not fully committed to doing it right) are far too high for the number of players to remain the same.
Those broker-dealers that are tertiary presences in the space likely will leave, and those who might otherwise be interested in starting an ATS probably will not do so.
What does this mean for off-exchange trading?
Although more competition generally benefits the consumer (or the investor, in this case), the pendulum probably has swung too far toward fragmentation.
It’s also not the worst thing in the world if the remaining players view their ATS as a core business to their firm and not an afterthought created because seemingly everyone else is in the space.
What will be the skill sets most in demand this year?
Trading desks and portfolio management teams will continue to require individuals that can collect, parse, and analyze data, and will prioritize the hiring of people with those skills.
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