Devexperts, a provider of software solutions to investment firms, is unveiling its market trend predictions for the financial industry in the upcoming year. In recent months, Devexperts has observed emerging trends in broker/dealer/client relationships, and these are expected to persist into 2024.

Clients Eager to Regain Control of Their Businesses

In 2024, Devexperts anticipates a rise in brokers broadening their services beyond mere access to the US market. This expansion encompasses global stock and ETF trading, along with diversification into various asset classes.

Broker revenues have experienced a decline, attributed to the push for zero commissions amid the pandemic. Simultaneously, operating expenses for brokers are on the rise. In response to this financial challenge, brokers are compelled to meet the demands of their increasingly discerning users. To counteract the decline in revenues, brokers are strategically introducing a broader range of trading options.

At the same time, brokers are adapting to market shifts, including Options trading volumes surpassing Futures, heightened regulatory compliance, and the volatile nature of cryptocurrency markets.

Recently, Devexperts noted trader demands urging brokers to adapt and integrate new offerings into their platforms. Users are no longer satisfied with restricted solutions; instead, they seek access to diverse global markets and multi-asset trading around the clock.

This shift is underscored by the growing preference for 24x7 markets in the United States, prompting brokers to swiftly adjust their approach in the new year as a crucial distinguishing factor for clients.

Regarding the future for Devexperts, Michael Sprachman, the Director of Exchange Traded Solutions, remarked: “Devexperts has identified a notable trend, evolving in 2024, where clients are eager to regain full control of their businesses. Given the choice between purchasing solutions or developing internally, Devexperts' hybrid model is being utilized by clients for rapid market entry and cost-efficiency.”

“This approach aligns with the rise of all-encompassing solutions for execution, clearing, and back-office operations, enabling brokers, both established and new to the market, to control and focus on core business aspects.”

As comprehensive solutions become more accessible to clients, and the increasing emphasis on regulatory requirements in global markets drives structured changes across the industry, this trend is expected to gain traction in the coming years. Specifically, there is a noticeable shift in the account structures managed between brokers and end destinations, prompting a transition from omnibus relationships to disclosed relationships.

In the upcoming years, Devexperts envisions creating a comprehensive ecosystem that allows brokers to maintain ownership of their businesses. The company's strategy involves building a marketplace and fostering collaborations with various counterparties.

DXtrade and FX Blue's Collaborative Trading Solution

Earlier, Finance Magnates reported that Devexperts entered into a strategic alliance with UK-based fintech firm FX Blue to introduce a new trading solution targeting contracts-for-difference and spread-betting brokers in London's financial technology scene.

The collaboration involves integrating DXtrade's back-end infrastructure with FX Blue's customizable web and mobile interfaces, aiming to transform the current trading technology landscape. This partnership allows brokers the flexibility to choose preferred trading platform UIs for clients while managing essential operations through the DXtrade backend.

Devexperts specializes in crafting software for the capital markets, and FX Blue has contributed its customizable front-end solutions, including features like responsive mobile interfaces and social trading elements. The financial terms of the partnership are designed to support brokers in business expansion and risk management.