With potential changes on the horizon, Aite Group looks at what has been shaping the futures industry, and predicts what could be in store in the year ahead.
A new report from Aite Group, LLC provides an overview of the futures industry from front (execution) to back (processing/clearing). The report considers the impact of electronic trading and regulation on the futures industry; discusses clearing, dark pools and technical analysis; and looks at the different futures products available.
After a long run of increasing volumes in 2008, the futures industry is seeing a major correction in volumes as the year draws to a close. Looking ahead to 2009, many are wondering what could be in store for the futures market. A merger of the SEC and CFTC seems inevitable, and the transaction tax on futures trades will be revisited by a U.S. Congress desperate for new revenue streams. Despite these developments, Aite Group predicts that the futures industry will remain largely unchanged, as the new administration will find it difficult to raise taxes or impose fees on an industry so vital to the investment community.
"While there are questions over what is in store for the futures industry, the past year has shown that the exchange-traded model for derivatives trading is successful," says Paul Zubulake, senior analyst with Aite Group and author of this report. "Barring any regulatory changes, the speculative trading community should continue to thrive in 2009. Electronic trading will continue to drive futures markets, and back-office personnel will remain as busy as ever in a space under-serviced by technology."
This 30-page Impact Report contains 10 figures and nine tables. Clients of Aite Group’s Institutional Securities & Investments service can download the report by clicking on the icon to the right.