Investment Operations

Coalition Greenwich Names Top Market Structure Trends for 2024

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Financial markets around the world in 2024 will continue to be reshaped by powerful changes in market structure.

“There is no new normal,” says Kevin McPartland, Head of Research at Coalition Greenwich Market Structure & Technology. “Technology innovation, the roll-out of new regulations and the development of new trading solutions and business models will continue transforming the infrastructure that supports global financial markets in the year ahead.”

In a report released last week, Coalition Greenwich examines 10 of the biggest market structure trends they will be watching in the new year. The top market structure trends in 2024 include:

  • U.S. Regulations Must Speed Up or Die Ahead of U.S. Elections: If Chairman Gensler believes his time in office is limited, he may be more inclined to swiftly push through aggressive reforms, understanding that his successor may be less likely to implement them. On the other hand, if he sees a longer runway after the presidential election, he may adopt a more measured and cautious approach to secure industry consensus or buy-in for his proposals.
  • The Exchange Buying Spree Continues: Exchanges are having an identity crisis, with every major global exchange increasingly shifting their revenue mix away from matching buyers and sellers and more toward—well—almost everything else. LSEG is now a global data powerhouse. ICE is modernizing the U.S. mortgage market. Nasdaq is in the risk management business. MarketAxess and Tradeweb both bought algo providers. This year will bring more mergers and acquisitions as the sector continues to reshape itself.
  • Buy, Build and Integrate Replaces Buy vs. Build: The “buy, build and integrate” approach will continue to gain traction as both buy- and sell-side firms combine pre-built platforms with proprietary technology systems. Even larger firms that have often built their own fully proprietary systems are increasingly considering integrating specialized third-party platforms due to their cost-effectiveness and functionality. This approach will become increasingly popular in 2024 due to its ability to provide a middle ground, leveraging a pre-built foundation that can be expanded and tailored through additional development or integration with internal systems.

Among the additional trends covered in Top Market Structure Trends to Watch in 2024 are the continued search for the “new normal” after COVID-19, the impact of generative artificial intelligence, challenges surrounding T+1, the rise of private markets, and the persistent, quiet advance of blockchain technology in capital markets.