More investors expect to trade via an app in 2018: JPM survey
Company restrictions are still top barrier to adoption
For the modern foreign-exchange trader, it’s now possible to find a date, hail a cab and trade $100 million — all through their mobile phone.
“We’ve seen quite a shift in terms of institutions allowing people to use mobile devices” in the last year, said Scott Wacker, global head of e-commerce sales and marketing at JPMorgan in London. “This form of communication is completely transforming how people do things.”
Financial companies are becoming more comfortable with employees using mobile apps as security features improve, including facial recognition and fingerprint readers, he said. The biggest trade on the bank’s mobile FX trading app exceeded $400 million, and it’s not uncommon to see $100 million deals go through the app, whose biggest users are hedge funds and other financial institutions.
The adoption follows a surge of online, or electronic, trading in the $5.1-trillion-a-day currency market as companies look to cut costs and keep better audit trails for their transactions. Traders conduct about 74 percent of their notional volumes electronically on average, up from 68 percent in 2017, according to the survey.
New MiFID II rules this year also loom large, with 73 percent of traders in the Europe, Middle East and Africa region saying it would have a daily effect on their jobs. That compares with 47 percent in the Americas and 45 percent in Asia Pacific.
JPMorgan’s electronic currency swap and forward volumes have almost doubled since the rules came into effect at the start of the year, according to Wacker.