Traders believe a shift toward electronic execution is set to accelerate across several asset classes in 2027, a JP Morgan study has found, with traders believing that e-trading will account for 70% of total activity next year.
Repo and short-term paper traders predict the biggest increase in electronic trading volumes (up 13% from 2026), closely followed by equity derivatives desks which expect to see a 12% increase.
Moreover, traders expect higher electronic trading volumes in credit spreads (up 10% from 2026), as well as FX (up 8% from 2026). Additionally, EM rates are expected by traders to see an 11% increase from the previous year.
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“Interestingly, traders in each asset class tend to predict the greatest advances in electronification within their own markets,” explained JP Morgan.
“This suggests that market participants are most optimistic about technological progress within the asset classes they are most attuned to.”
Elsewhere, respondents highlighted several market structure concerns, with ‘developments in financial market technology’ topping the list. Notably, traders had ranked this above ‘access to liquidity’.
Other concerns included ‘impactful regulatory proposals’ (listed by 18% of respondents), ‘market information leakage’ (13%), ‘market data access and costs’ (12%), and ‘execution costs’ (9%).
JP Morgan’s ‘e-Trading edit’ survey includes responses from traders (66% buy-side) across 59 countries and 13 asset classes.