Outlook 2018: David Parker, MTS Markets International
David Parker is the head of sales at MTS Markets International.
What do you see as the next major watershed for the industry in 2018?
MiFiD II will have the most impact on the industry in 2018, not just in Europe.
What do you view as the most important lesson of 2017?
Technical demand for bonds can overwhelm any negative news.
Why do you expect investments in fintech to rise, plateau, or trail off in 2018?
Fintech investments are beginning to bear fruit, ie ICE buying BondPoint at a big premium and blockchain/DLT gaining acceptance and practical use. Investment will therefor continue apace.
What do you expect to be the skill sets most in demand in 2018?
Quantitative/algo developers and traders in fixed income
Will Wall Street return to focusing on innovation to drive alpha in 2018?
Wall Street will always be innovative, but I think 2018 will continue to see a focus on cost cutting instead of increasing proactive investment.
Which market structure changes should take place in 2018?
Seamless integration of all trading platforms to accommodate two-way client flows. Consolidated clearing of European/UK cash markets.
ETF investors continued to trim their equity exposure.
Nearly 80% of firms struggle to understand firm-wide limits and counterparty exposure.
MiFID II has increased interest in updating fixed income technology.
The proposal raises dissemination caps and adds large-trade delays.
SFTR is the equivalent of MiFID II for securities financing.