Banks reported another strong month of revenue growth in December ending the year on a high, while non-bank FCMs continued to experience tougher market conditions, the latest Acuiti Derivatives Insight Report has found.
Early volatility at the beginning of the month was enough to result in an overall increase in revenue growth for most market segments despite a fortnight of low volatility at the end of the month.
Overall, 42% of all respondents reported higher month-on-month revenues, up from 24% in November and 28% in October.
Confidence also rose in the latest report with the Acuiti Derivatives Sentiment Index rising to 59% up from 52% last month and driven by an increase in confidence in Europe.
Will Mitting, managing director of Acuiti, said: “The industry ended 2019 on a positive note overall despite a significant drop off in volatility at the end of the month.
“Banks in particular saw a significant increase in revenue growth, however, conditions remain tough for non-bank FCMs and brokerages with brokerages across Europe experiencing the toughest conditions.”
This month’s report also found that headcount at banks continued to be cut last quarter while proprietary trading groups and the buyside added trading headcount at the fastest rate to date.
Meanwhile, capital rules have risen significantly up the list of barriers to growth for proprietary trading groups and the buyside ahead of the introduction of the Investment Firm Directive.
Acuiti was launched in February 2019 and to date over 550 senior executives in the derivatives market have joined the platform.
To apply to join the Acuiti network and get the opportunity to take part in and receive next month’s Acuiti Derivatives Insight Report, visit acuiti.io
