Analysis of Technological and Regulatory Pressure on Global Capital Markets

Autonomous Research has quantified the rising regulatory and technological pressure in global capital markets. Since 2010, we have found a gradually decreasing revenue pool across (1) FICC, (2) Equities and (3) IBD. The CAGR across these divisions stands at -3.4% for the period between 2010-2016. However, The FICC division experienced a significant decline with a CAGR of -5.5%.  This is attributed to increased regulation and the associated deleveraging of the ecosystem combined with increasing technological forces.