Derivatives Market Weighed Down by Brexit, Acuiti Report Finds

Brexit uncertainty continues to hang over the United Kingdom’s derivatives market, the inaugural Acuiti Derivatives Insight Report found, despite solid revenue performance in the sector during the month of March.

Acuiti is a new business intelligence platform for the global derivatives market. The first report from the platform, which is based on submissions from over 140 senior derivatives professionals, found that revenues for the derivatives sector had either risen or remained constant in March of 2019 on both a monthly and yearly comparison.

Specifically, out of the total respondents, 38 percent reported an uptick in revenues month-on-month, and 33 percent achieved an increase in revenues on a year-on-year comparison. Seventeen percent of total respondents, however, experienced lower revenues month-on-month.

During the month of March, non-bank futures commission merchants (FCMs) and inter-dealer brokers reported the most positive trading conditions, the report found. However, banks reported challenging market conditions.

Acuiti: UK and Europe Drag Down Segment Performance

The Acuiti report also found that, although the segment as a whole achieved stable results, there was a marked difference in the performance across continents. Specifically, South America, the Asia Pacific region and the Middle East all drove revenue growth. However, European and UK participants faced a more difficult market.

UK respondents to the survey had the most depressed revenues combined with the fastest rising cost bases. The majority of the survey participants based in Britain cited Brexit Brexit Brexit stands for British Exit, or in reference to the United Kingdom’s decision to formally leave the European Union (EU) as declared in a June 23, 2016 referendum. In a more immediate sense, a tight vote and unexpected result helped drive British pound (GBP) to lows that had not been seen in decades.The day following the referendum, former Prime Minister David Cameron resigned from office where he was replaced by Theresa May, who later resigned from office on June 7th, 2019. Active Prime Minis Brexit stands for British Exit, or in reference to the United Kingdom’s decision to formally leave the European Union (EU) as declared in a June 23, 2016 referendum. In a more immediate sense, a tight vote and unexpected result helped drive British pound (GBP) to lows that had not been seen in decades.The day following the referendum, former Prime Minister David Cameron resigned from office where he was replaced by Theresa May, who later resigned from office on June 7th, 2019. Active Prime Minis Read this Term as a primary obstacle to achieving growing revenues.

Commenting on the results, Will Mitting, managing director of Acuiti, said: “The overall performance and outlook for the derivatives market is positive but the ongoing uncertainty over Brexit is having a major impact on market participants in both the UK and Europe."

“Despite a strong month for volumes in March and a positive performance outside Europe, Brexit is causing a Cloud Cloud The cloud or cloud computing helps provides data and applications that can be accessed from nearly any location in the world so long as a stable Internet connection exists. Categorized into three cloud services, cloud computing is segmented into Software as a Service (SaaS), Infrastructure as a Service (IaaS), and Platform as a Service (PaaS). In terms of trading, the versatility of the cloud service allows retail traders the ability to test out new trading strategies, backtest pre-existing conc The cloud or cloud computing helps provides data and applications that can be accessed from nearly any location in the world so long as a stable Internet connection exists. Categorized into three cloud services, cloud computing is segmented into Software as a Service (SaaS), Infrastructure as a Service (IaaS), and Platform as a Service (PaaS). In terms of trading, the versatility of the cloud service allows retail traders the ability to test out new trading strategies, backtest pre-existing conc Read this Term over revenue growth and leading to sharp rises in cost bases in both the UK and the other EU countries.”