The Shift from Traditional Trading to Electronic Trading

The trading landscape has undergone a significant transformation with the decline of traditional methods and the rise of electronic trading. Firms that once thrived on personal relationships and phone calls for trade execution are now being overshadowed by non-bank trading firms that operate predominantly through sophisticated algorithms and technology. This transition has resulted in a more efficient trading environment, where machines can process vast numbers of transactions at unprecedented speed. Consequently, traditional investment banks are losing market share to these innovative entities, which often manage hundreds of billions of dollars in daily transactions.