Shaping the Future of Execution: Key Takeaways from TT Connect 2025
Capital markets are transforming, driven by breakthroughs in technology, shifting regulation and new economic realities. Against this backdrop, our third annual TT Connect event in London recently brought together over 150 senior executives from across trading, technology, business and compliance to discuss the future of execution. The event covered the UK’s regulatory direction, potential risks in the global economy, the evolution of proprietary trading, and the growing role of data and automation in trading.
The overall message across the event was clear: the trading landscape is rapidly evolving, volatility and volumes are rising, and success for firms in the market will depend on how well they balance innovation and resilience.
In this piece, I take a closer look at some of the key takeaways and discussions that emerged at TT Connect.
New Technologies Are Accelerating Change
The pace of innovation is reshaping capital markets. Today, the interlinking technologies of AI, cloud computing and blockchain are already having an impact. In time they will bring fundamental changes to both market structure and the roles firms play in it.
For firms that can successfully leverage new technologies, the potential opportunities are immense. AI and cloud computing are already being deployed in ways that enable the analysis and processing of data at an unprecedented scale.
But while technologies are transforming trading, they are not replacing people. Instead, technology is amplifying human capabilities. The most successful firms are using advances in technology to free traders from repetitive tasks so they can focus on strategy, insight and innovation.
However, advances in efficiency and the adoption of technologies must be matched by advances in resilience. As last year’s CrowdStrike-related outages and recent cybersecurity breaches have shown, businesses today are heavily exposed to potential risks from failures or weaknesses in their digital supply chains. This reliance will only increase as AI becomes more embedded in workflows.
Volatility Likely to Continue Across Global Markets
While innovation dominated the discussions, the growing risks in the market weren’t ignored. Speakers raised concerns over stretched equity valuations, rising government debt and defaults in the private credit markets as areas of potential weakness that could impact global markets.
Yet while volatility brings risks, it also brings opportunities. Firms have invested heavily in the resilience and scalability of their trading operations and workflows. The challenges seen in the derivatives market around the initial outbreak of COVID-19 have largely been addressed as is evidenced by the industry’s performance during subsequent outbreaks of extreme volatility, most recently in April.
But there can be no room for complacency. Firms will need to continue to invest in resilience, adapt to new threats, and ensure that their systems and processes are sufficiently scalable to withstand spikes in volumes and volatility.
Technology plays a central role in this effort, but team structure and communication matter too. Ensuring open, effective lines of communication across a company is essential both to withstanding periods of volatility and to learning from weaknesses when they are exposed.
Regulation Can Accelerate Innovation
The UK’s vote to leave the EU in theory presents an opportunity to develop a regulatory framework that encourages innovation. It is making progress in this respect: the UK’s Financial Services and Markets Act (FSMA) 2023 represents a move toward smarter, more flexible oversight.
Regulators need to work closely with the market to foster innovation. There are encouraging signs from the UK’s Financial Conduct Authority (FCA) and Prudential Regulation Authority (PRA), which have set up the digital sandbox among other initiatives. If the UK is to regain and maintain its position on the global stage, regulators need to work in partnership with the firms they regulate to support innovation while protecting integrity.
As blockchain technology, digital assets and AI continue to advance, the UK can become a global center for innovation in these markets. But regulation needs to be proportionate, flexible and designed to allow firms to thrive.
Data Is the Common Thread
Whether in trading, clearing, risk management or regulatory compliance, data is at the center of everything. Capital markets participants today need faster access to clean, transparent data—not just for execution, but to enhance client offerings, improve communications and enhance reporting to regulators.
Cloud platforms and AI are making it increasingly possible to analyze vast datasets in real time. We are only at the beginning of what is possible, and change will happen fast.
The inevitable move to 24/7 trading will require massive investment in the automation of data management to reduce the burden on staff. The firms that adapt best to the changing market will be the ones that can get ahead in data management.
The Key Takeaway
The pace of change in capital markets is accelerating. Regulation is becoming more agile, technology more intelligent and trading more data-driven. Technology is an enabler of change, but humans will ultimately drive the markets of tomorrow.
Blockchain, AI and cloud computing will enable 24/7 trading, instant settlement and real-time, fully automated risk management. In turn, markets will experience continued growth in both participation and trading volumes. The opportunity lies in how firms respond. The winners will be those that embrace change in a secure and resilient way.