Firstly, I would say that artificial intelligence and algorithms are taking up more and more space. Therefore, we need to adapt our skills to understand how they function as they evolve. The way we practice our profession is not the same as yesterday and will not be the same as tomorrow; we must be able to adapt alongside progress.

This means being able to question ourselves to change our execution methods and stay informed of all progress to avoid being left behind, both for new asset classes and new products such as blockchain, regulatory environments, new sources of liquidity, market participants, risk management, and emerging topics of current interest, such as quantum computing.

In your opinion, what skills should be the main priority for traders looking to succeed in the equities space?

The priority is rigor and not letting oneself be overwhelmed. Always stay connected and able to understand the markets and the economic, geopolitical, and technical factors to anticipate. This is even more important when working in equities because it’s a market that reacts strongly to news flow. If I must mention a quality, it would be to have a strong curiosity about the world in general and to be reactive and passionate about the central role we play in the economy.

What advice would you give to others looking to also enter the world of equity trading?

I love my job, so the first thing that comes to mind in response to this question is that it is the best choice they can make! I started with forex, and even though I am now multi-asset, equity occupies most of my time, much to my delight. In this profession, every day is different and very stimulating. To be an equity trader, you need to be dynamic and not afraid to work hard and put in the hours.

The biggest advice would be to start acquiring solid coding skills as early as possible to anticipate the evolution of our profession in the medium term. To already take an interest in current regulations and follow major stock market capitalisations with news and financial results, to develop an ‘equity vision’ that cannot be acquired overnight. To be aware that it’s a profession that remains elitist in hiring, and that one must demonstrate great determination to succeed and progress, but it’s worth it and one should never give up.

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How do you see the make-up of the desk evolving over the next five-10 years?

I believe that automation will increasingly play a significant role on every desk. Regarding mine, we already have many tasks automated thanks to the algo wheel and the use of AIEX, etc. Our role today is to implement these processes to automate as much as possible, while respecting constraints related to compliance, risk management, etc. Over the next five to 10 years, we should see new roles emerge in connection with advancements such as data analysis and flow with the emergence of new players.

Our professions will also evolve in this direction, and each company will support this progress by training their traders in these new skills. However, I believe that some professions are at risk of disappearing, such as broker roles in high touch – but we have been saying that for years, and yet they are still here. So only the future will tell.

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Market volatility and the continuously changing regulatory environment demand faster response to client needs. Access to high quality data is crucial but thanks to innovation and AI we are now able to enhance foreign exchange trading workflow in a most efficient way. Auto execution RFQ trading is one solution to ensure speed of execution in stressed market conditions with the benefit of better serving the clients while meeting compliance requirements to ensure high quality of execution. Human capital remains highly valuable and being able to leverage automation coupled with human insight can have a huge value add.

How can this process be improved?

It is important to keep auto execution RFQ trading agile and dynamic by continuously analysing data quality and revising from time to time the eligibility criteria adopted to ensure they still meet clients’ needs and best execution requirements as defined by the regulator. A flexible approach allows to fully exploit and benefit from the innovative service offered by trading venues and liquidity providers.

What still needs to be done to optimise automated trading in FX?

The FX market has been slower to adopt the benefits of automation compared to other asset classes. One step towards optimisation is to digitalise the whole onboarding process. Data sources and access for regulatory and compliance checks are not always straightforward to retrieve and this affects the speed of the overall process.

Which FX instruments remain the least automated and why?

FX derivatives as they require large pre-trade data analysis. Thanks to AI, we now manage onboarding related data in a more efficient and precise way to properly feed our OMS and auto-execution tools.

We are keen to include FX derivatives among our automated FX workflow to offer the same level of innovation we deliver on other asset classes. Beside our natural attitude towards the most technological and recent tools alongside our natural inclination towards the most technological and recent tools, it is crucial for us to be able to properly monitor the risk embedded within them and the quality of execution in the interest of Generali Group and clients.

How do you expect the global macro environment to continue to impact the FX liquidity landscape?

Innovation across the whole financial market is a matter of fact with its impact perceived across asset classes. As part of the ongoing process, I do expect FX to consolidate the current transition toward greater automation in the future, deploying high-performance workflow tools which can strengthen efficient data sources and support even more complex analytics. Though it is key to have human capital with an innovative mindset to keep pace with industry developments.

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