Traders optimistic about arrival of digital assets and AI

Traders optimistic about arrival of digital assets and AI

Traders operating on the Swiss Stock Exchange believe that the maturing of AI and digital assets is set to reshape the capital markets, with demand from clients for crypto investing growing.

A survey of market participants conducted by SIX revealed enthusiasm for trading digital assets, with almost two-thirds reporting growing interest from clients to get exposure to the new asset class.

The expectation is a positive for SIX, which is currently building SIX Digital Exchange, a fully integrated issuance, trading, settlement and custody infrastructure for digital assets.

When asked about their long-term outlook for trading digital assets and crypto products, an even higher majority of traders - 80% - believe that demand will increase. When considering the impact of trading digital assets more broadly, many feel it will streamline the trading and settlement process and reduce overall trading costs.

Similarly with artiifical intelligence, almost two thirds of traders believe it will create more trading opportunities for the traditional equities business. Two out of three traders also expect AI to reduce the cost of trading, although an even higher majority of 72% thinks that AI will create more volatile market conditions.

Tony Shaw, director od SIX's London office, comments: “Innovation in this space is going to be a key driver helping our industry become more effective at withstanding future risks and challenges presented by the market. Exchanges such as ours are currently looking at various ways it can serve to benefit clients across the entire value chain - from trading to post-trade. However, it is still relatively new technology and it so it is only natural for people to be cautious about it.”

When asked for their three-year outlook on their job roles, 42% expect a stable environment. And while there are slightly more who expect headcount cutbacks than new hiring’s (15% vs 12%), those that anticipate business growth are outnumbering those that forecast a slowdown (18% vs 14%).

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