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How to Help Clients Navigate Covid Trading Risks

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It has been a tough few years for the capital markets. Covid-19 led to mass unemployment, reduced economic activities, surges in inflation, supply-chain crises, and uncertainty surrounding policy to name a few. The result has been intermittent and unpredictable bouts of high volatility in the financial markets.

In 2020, record trading volumes and persistently high levels of volatility through the year tested operating models for brokers. In some asset classes, this surge in trading, coupled with work-from-home (WFH) arrangements led to significant pressure on market operations. In the same year, a study revealed some 30 to 35% of buy-side and sell-side firms faced significantly more operational challenges with regard to post-trade activities in cash equities and cash fixed income.

Amid the rise of new variants and lockdown rules being put back in place without any warning, investor sentiment has also taken a hit. Essentially, covid-19 and associated…

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