Percentage of Electronification in Various Asset Classes

Does anyone have any feeling to what the percentages in this graphic would be in 2018 (split by each asset class)? See the image from a Mckinsey report on electronification below...

So in 2015:

Cash Equities: 80%
Futures: 90%
CDS Index: 80%
FX Spot: 70%
UST: 70%
EGB: 60%
Precious Metals: 60%
FX Forwards: 55%
Agencies: 50%
Covered Bonds: 50%
FX Options: 55%
FX Swaps: 40%
Repos: 50%
Standardised IRS: 70%
IG Cash: 40%
CDS single name: 45%
HY cash: 25%

...what are your estimates for this list this in end of 2017/start of 2018??

Graphic

 

That looks about right.

One thing I would say is that isn’t necessarily the real flows. There’s a reason a stock might trade it’s entire flow in 36 hours after an event. A lot of that is just guys taking pennies. The real volume of something getting removed from one guys portfolio and placed in another persons portfolio is a lot lower.

 

In 2018, my estimates for increasing amount of automation: Cash equities, equities option(or any kind of exchange options), CDX, on the run treasury, agencies, futures , IG, spot fx, loans, STIRP

For OTC options, it would still be dominated by voice traders.

Best desk in bank now? Cross asset structured product

 

1) it is cross asset 2) it is bespoken so more premium. 3)corporate clients like Google , Facebook are much more interesting

in some companies, this team belongs to capital markets

 

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