UBS Says Welcome to the Machines in Credit Trading

Discussion in 'Journals' started by Banjo, Mar 27, 2018.

  1. Banjo

    Banjo

  2. This will cause a material displacement of all these desk traders 5-8 years out much like the AWS cloud has displaced lots of sysadmins now. It will be gradual as various aspects of AI and machine learning gets rolled out. The final nails might be when Natural Language Processing is incorporated into it.
     
  3. Similar to equities. No one, I mean no one gives a care about the IT and algo side of it. But they do care that the commissions are lower. So the execution traders will die off, and the smallest clients will gravitate to DMA / electronic communication - the clients no one wanted to talk to anyway (except for the grads). Block trades and facilitating chunky orders will be the only game in town.