Brokers expanding global services amid shifting user requests: Devexperts 2024 forecast
- Devexperts forecasts an expansion of broker services beyond the US market into global stock, ETFs, and diverse asset class trading in 2024.
- Brokers will continue to navigate market shifts such as Options trading volumes surpassing Futures, heightened regulatory compliance, and cryptocurrency market volatility.
- Brokers will need to provide traders with access to diverse global markets and multi-asset trading at all hours of the day.
- All-encompassing solutions for execution, clearing, and back-office operations will become a trend with brokers.
LONDON, Dec. 13, 2023 /PRNewswire/ — Devexperts, a software solutions provider to investment firms, is revealing its top market trend predictions for the financial industry in the upcoming year. Throughout recent months, Devexperts has witnessed emerging trends within broker / dealer / client relationships that are predicted to carry through into 2024.
In 2024, Devexperts foresees an increase in the number of brokers expanding their services beyond just US market accessibility. This growth includes global stock and ETF trading, along with an expansion into diverse asset classes. Broker revenue, having decreased from the peaks during the pandemic primarily due to the push towards zero commissions, coupled with an increase in operating expenses, has prompted brokers to cater to their increasingly demanding users by introducing a wider array of trading choices to drive their potential earnings. Simultaneously, brokers are navigating through market shifts such as Options trading volumes surpassing Futures, heightened regulatory compliance, and the volatile nature of cryptocurrency markets.
At the tail end of 2023, Devexperts is seeing trader demands pushing brokers to adapt and integrate new offerings into their platforms. Users no longer settle for restricted solutions; instead, they want access to diverse global markets and multi-asset trading at all hours of the day. This shift is reinforced by the rising preference for 24×7 markets in the United States. To respond, brokers will need to rapidly adjust their approach to meet these requests in the new year as it is an important distinguishing factor for clients.
Regarding what the future holds for Devexperts, Michael Sprachman, Director, Exchange Traded Solutions, said: “Devexperts has seen a prominent trend emerging, which will continue to evolve in 2024, where clients are eager to take back full control of their businesses. Being given the choice between buying solutions or building internally, Devexperts’ hybrid model is being used by clients to gain quick market entry and cost-efficiency. This approach aligns with the rise of all-encompassing solutions for execution, clearing, and back-office operations, allowing brokers, both mature and new to market, to control and concentrate on core business aspects.”
As comprehensive solutions have become more available to clients, and the increasing emphasis on regulatory requirements in global markets is now driving more structured changes across the industry, this trend is predicted to gain traction in coming years. Specifically, there’s a notable shift in the account structures managed between brokers and end destinations, where changes are prompting a transition from omnibus relationships to disclosed relationships.
For 2024 and beyond, Devexperts is aiming to establish a complete ecosystem without having brokers forfeit ownership of their businesses. Instead, the company seeks to develop their marketplace, collaborating with multiple counterparties.
John Norris / Chrissa Diakanastasis
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