2024 Outlook
On Research and Data
"In 2024, AI will continue to be front and center in conversations with our clients. When combined with our unique data, it will allow us to further elevate our suite of top-tier data products for pricing and liquidity. From Adaptive Auto-X to our cutting-edge trading interface, MarketAxess X-Pro, our data products will augment credit algorithms for superior execution and provide our clients with refined tools for protocol selection and portfolio construction."
On Munis
"A Presidential election coupled with a potential shift in domestic monetary policy could lead to periods of increased volatility in the muni market. New issue supply estimates are mostly predicting a year similar to 2023. Given some interest rate and economic growth forecasts, however, Issuers’ desire for funding through the muni market may increase, potentially causing actual supply to exceed estimates."
On Automation
“I believe more clients will be able to achieve desired outcomes simultaneously across multiple trading protocols as routing and pricing technologies continue to advance. In addition, I believe that real-time pricing, trading alerts and risk controls will become more effective in helping customers trade in different environments. It has never been easier for market participants to start systematic credit trading and I expect this to continue in 2024.”
On Emerging Markets
“There’s renewed optimism in Emerging Markets with increased liquidity, expansive data and new protocols that will help investors in LATAM and globally. High-rate volatility periods and an increase in local currency trading ADV contributed to an overall positive year for EM on our platform, and we expect this momentum to continue into 2024 as more market participants turn to e-trading venues.”
On APAC Market Structure
“We’re keeping an eye on China’s LGFV market as it receives growing interest as investors evaluate the varying credit quality in that market. For Japan, Australia, Korea – the story is one of diversification with investor portfolios needing to rebalance a bit away from China. We’ve already seen that in motion in 2023 and this will continue into 2024.”
On Market Structure
“As the industry prepares for a combination of new bank capital rules and T+1 settlement in the US, there will be an even more significant focus on trading solutions that allow rapid recycling of risk as well as trade lifecycle automation. 2024 will be a year where data, automation technologies and matching solutions begin to coalesce, with the aim of enabling more efficient workflows and optimized execution/capital management.”