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Financial professionals who trade in foreign exchange and fixed income categories are increasing their activity in emerging market products, according to a survey by global investment bank Barclays Capital.
“As many as 74 per cent of foreign exchange users said that the most important factor for them and their organisations was to have access to streaming emerging market prices across all the time zones,” the survey said.
The survey further said that 57 per cent of foreign exchange users and 33 per cent of fixed income users currently trade in emerging market products, up from 51 per cent and 26 per cent, respectively, in 2009.
The 12-18 month outlook for this space looks promising as 94 per cent of foreign exchange users and 97 per cent fixed income users expect to trade the same or higher proportion of emerging market products electronically.
The survey was conducted globally throughout December 2010 and January 2011, and covered asset managers, broker-dealers, central bank/government corporations, hedge funds, insurers, pension funds and private banks.
Interestingly, with the increase in demand for emerging market products, the need for electronic access is also rising.
In 2008, 47 per cent of the respondents traded more than half of their foreign exchange volume electronically. In 2010, the number increased to 68 per cent. In the case of fixed income volume, it increased from 27 per cent to 54 per cent in 2008 and 2010, respectively, said the report.
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