Proprietary trading firms see the most opportunity in 2022 in crypto-currencies, equity options and interest rate markets, the latest Proprietary Trading Management Insight Report has found.

The report, which is produced in partnership with Avelacom, is compiled based on anonymous submissions by senior executives in Acuiti’s global proprietary trading management network.

The report found that, despite recent falls and uncertainty over the regulatory framework, the sheer scale of volatility in crypto presents enormous opportunities for proprietary trading firms as both retail and institutional activity continues to grow.

In terms of regions, firms saw the most opportunity across all asset classes in North America and APAC. The opportunity in the latter was seen most in mainland China and on HKEx while in North America firms saw the most potential for growth in 2022 on the CME and equity options markets.
 
Proprietary trading firms are also planning significant investment in 2022 with algo trading tools, co-location infrastructure and market data technology the most common targets for investment.

When it came to cost increases in 2021, firms were most likely to report increases in market data fees and exchange fees, exceeding the number of firms reporting costs rising from investment or bringing on new staff.