Data analysis is the most important skill on the trading desk, finds a report

Despite their many differences, the equities, fixed income and foreign exchange desks are united in their desire for data-savvy traders, according to a report from Refinitiv.

Data analysis and data science were the top-ranked skills for the next one to three years by traders across all asset classes, followed by knowledge of the market and market structure.

“As workflows become increasingly data-driven, the ability to manage, analyze, and draw accurate conclusions from large datasets is a very important skill on today’s trading desk. today,” said Dean Berry, Group Head of Trading and Banking Solutions at LSEG. TRADE.

For bond traders in particular, key value datasets included dealer cycles, flows, axes, aggregate dealer pricing systems, and liquidity scores.

Automation was a top priority for traders going forward across all asset classes in Refinitiv’s Evolution of Trading report, alongside the need for greater digital communication and manipulation and analysis Datas.

For FX traders, key areas of workflows that needed to be automated further included regulatory reporting, risk management and compliance checks, and post-trade processing.

For the equity traders surveyed, it was the same areas ranked slightly differently, with regulatory reporting taking the top spot, followed by post-trade execution analysis, transaction cost analysis and price discovery before trading.

Fixed income traders have prioritized automating pre-trade price discovery, post-trade processing, and post-trade execution analysis.

The remaining manual tasks, despite market shifts over the past five years, were the same across all asset classes, including typing one app into another, waiting longer than expected for the loading data and copying and pasting from Excel into a company. application.

Email, telephone, market data terminal and office tools were in varying orders ranked as the most important tools by respondents to Refinitiv’s survey.

Despite the desire for automation, the main obstacles preventing it in the fixed income markets included a limited budget, limited resources to perform the integration, and the inability to integrate with existing systems.

Fixed-income traders said they plan to use more e-commerce and automation alongside consolidation of vendors and systems to cut costs. Reducing data costs came in surprisingly fourth, perhaps as bond traders have resigned themselves to their fate of paying through the nose for data.

Similarly, FX traders have cited system automation and consolidation as a way to deal with current market events.

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