Proprietary trading firms showed strong operational resilience during the market turbulence of Q1 2026 the latest Acuiti Proprietary Trading Management Insight Report has found.
The quarterly Proprietary Trading Management Insight Report, which was released today and is produced in partnership with Avelacom, is based on a survey of the Acuiti Proprietary Trading Expert Network, which comprises senior proprietary trading executives around the world. The report provides insights into the key trends facing the community.
Managing Market Stress
The first quarter of 2026 saw significantly heightened volatility, driven primarily by conflict in the Middle East. Despite the intense market stress, 83% of the Acuiti Proprietary Trading Expert Network reported strong overall operational performance during the stressed market conditions.
However, weaknesses did emerge: 54% of respondents reported issues with market data feed capacity and latency, and 46% encountered problems with order management and execution infrastructure.
Ross Lancaster, Head of Research at Acuiti comments: “Proprietary trading firms once again demonstrated the resilience that comes from sustained investment in technology and risk management infrastructure. While the market stress of Q1 2026 exposed some bottlenecks around data and execution, the overall picture is one of an industry that is well-equipped to operate under pressure. The challenge now is ensuring that infrastructure keeps pace with the speed and scale of modern markets.”
Aleksey Larichev, CEO of Avelacom comments: “One of the most interesting findings in this report is how infrastructure bottlenecks continue to emerge during volatility events – particularly around market data delivery, execution infrastructure and exchange connectivity. This further highlights the importance of physical infrastructure and low-latency connectivity for a broad range of trading firms, beyond only the most latency-sensitive participants.”
AI Affects Hiring
This quarter’s report also found that AI is beginning to reshape workforce dynamics at proprietary trading firms. Almost 50% of respondents said AI had caused them to slow the pace of hiring, though only 15% are actively reducing headcount as a result of AI-driven productivity gains at this stage.
Digital Asset Growth
The report also examines engagement with digital assets. While 44% of firms are already participating in some capacity, a significant proportion remain on the sidelines, although 24% are actively evaluating entry.
Alpha generation is the primary motivation among those already trading digital assets, , cited by 69% of respondents, with portfolio diversification also playing a notable role. Many firms are citing regulatory uncertainty – particularly in the US – for those evaluating entry into digital asset markets. However, the expected passage of the Clarity Act is anticipated to catalyse a wave of new entrants to digital asset markets.
Latin American Opportunities
Latin America remains a largely untapped opportunity for proprietary trading firms, with only 11% currently active in the region outside Brazil, although 29% are actively evaluating entry. Mexico is the primary focus for firms considering expansion in the region, with connectivity and co-location set-up cited as the most significant barrier to entry.
Aleksey Larichev comments: “The focus on Latin America as a region of growing interest further supports our vision around network expansion and our recent points of presence in the region, providing connectivity access to LATAM derivatives markets.”
Other key findings in this quarter’s report include
- A third of proprietary trading firms are increasing their use of directional positioning, driven primarily by improvements in quantitative model signal quality and an increased risk appetite at the firm level, with almost half also citing reduced profitability from pure market-making as a driver.
- DeFi participation remains limited among those firms active in digital assets, with only 31% trading on DeFi platforms. Insufficient liquidity depth for institutional order sizes is the most commonly cited barrier, followed by regulatory uncertainty.
The report also features a Q&A with Kalshi’s Andy Ross, Head of Institutional Business, covering data quality, liquidity provision, order book integrity, margin and the competitive landscape for prediction markets.
Download full report here: https://www.acuiti.io/proprietary-trading-management-insight-report-q2-2026
