Jamie Grant, President of CanDeal Markets, has highlighted key themes for the firm's operations in 2024, particularly focusing on the support provided to clients navigating the complexities of the financial landscape in Canada and internationally. CanDeal aims to strengthen its partnerships through trading, data, analytics, and constant innovation, ensuring that its clients and the Canadian markets maintain a competitive edge globally. Grant noted that there is a rising demand for the electronification of fixed income, underscoring that their growth in volume reflects this trend.
Data-driven insights are becoming increasingly vital in this environment, with a notable uptick in demand for CanDeal’s pricing and analytics services through their CanDeal Data & Analytics (DNA) division. By integrating their DNA product offerings with trading capabilities, the company is enhancing processes such as price discovery and post-trade analytics, while also seeking to reduce benchmark tracking errors. This integration is also designed to optimise financial returns for individual securities or holdings.
A significant aspect of CanDeal’s support involves the transition away from the Canadian Dollar Offered Rate (CDOR) and Bankers’ Acceptances, directing focus towards the Term CORRA benchmark rate. CanDeal is currently the only designated benchmark administrator by regulators for this rate, which is rooted in price and trade data from CORRA interest rate futures on the Montreal Exchange.
Looking back at 2024, Grant noted the firm experienced substantial momentum across various business lines, driven by the expansion of electronic trading and recent shifts in interest rates. One of the pinnacle moments was on June 3, 2024, when CanDeal achieved a daily trading record of $67.8 billion, a noteworthy milestone that underscores the growing electronic trading activity involving Canadian dollar products. The expectation is that annual trading volume will reach near $10 trillion by year's end, an increase of over 80% year-on-year. In tandem with these developments, CanDeal has introduced new tools such as the CanDeal DNA Reference Pricing and the CanDeal DNA Consensus OIS & Swap Rates, which aim to increase market transparency amid ongoing transitions towards the Term CORRA benchmark.
For 2025, CanDeal anticipates maintaining the momentum gained from trends in electronic trading, with further increases in trading volume expected. The firm is also cognisant of the generational shift taking place within banks and investment firms, where upcoming professionals are pushing for greater innovation and investing in artificial intelligence and data infrastructures. Grant elaborated that these advancements not only influence the innovative direction of CanDeal’s products and services but also the operational landscape within financial markets.
In addressing client pain points, Grant described a landscape where firms are demanding deeper insights for competitive trading and investment decisions, all while coping with tighter spreads, rising market volatility, and regulatory pressures. Furthermore, firms are increasingly focused on leveraging investments in artificial intelligence to boost efficiencies. This shift underscores the necessity for continued collaboration across the market, aiming to foster innovation and ensure market stability in a rapidly evolving industry.
Source: Noah Wire Services