At iFX EXPO LATAM 2024, Acuity Trading’s Andrew Lane discussed the successful rollout of their Research Terminal, the impact of AI on the trading industry, competition from AI-powered solutions, emerging market trends in Latin America, and the rise of prop trading, while addressing regulatory challenges and innovations.
The event gathered industry leaders from the buy-side and sell-side, vendors, and regulators. It featured diverse panels and discussions on the future of trading technology, regulatory hurdles, and emerging market trends.
As always, networking was a key highlight at iFX EXPO, and this year was no exception. Among the notable attendees was Andrew Lane, Founder and CEO of Acuity Trading, a pioneering firm that harnesses AI to deliver advanced market insights and analytics to traders and financial institutions.
Before founding Acuity Trading, Lane had a significant career in financial services and media, working with esteemed organisations such as the Wall Street Journal and Dow Jones. His extensive experience in market dynamics and financial journalism has been instrumental in his success in leading Acuity Trading.
FinanceFeeds had the opportunity to interview Lane, discussing the successful rollout of Acuity Trading’s
Research Terminal, the impact and challenges of AI in the trading industry, emerging market trends in Latin America, the rise of proprietary trading, and navigating regulatory landscapes.
Research Terminal: a huge success
Lane elaborated on the recent launch and success of Acuity's Research Terminal. He highlighted that the rollout was a phased approach, starting at the end of last year with subsequent enhancements through early this year.
The terminal integrates seamlessly into various platforms and utilises innovative communication methods like WhatsApp and Telegram. Lane credited the "amazing product and sales team" for the successful adoption, noting that both new and existing clients have embraced Research Terminal enthusiastically.
“We've had an amazing rollout of the product, new clients, but also our old clients adopting it, as we are integrated into more platforms. And the technology of breaking content out of the research terminal using multiple methods such as WhatsApp or Telegram and so forth. It's really signing well."
AI is taking over
On the topic of AI, Lane reflected on the early adoption of AI by Acuity Trading, long before generative AI became mainstream. He acknowledged the prevalence of "AI-washing," where companies claim AI capabilities without substantial backing.
Lane, who has been involved in the science of natural language processing (NLP) and also comes from a media background, expressed that while AI presents both opportunities and threats, companies that genuinely understand and leverage AI's potential will thrive. Lane also predicted that many companies might struggle to keep pace with the rapid advancements in AI technology.
“Large Language Models (LLMs) in AI are breaking open the ability to create news on itself. So it's a really interesting time. And it poses a threat to traditional businesses. But it also provides an opportunity for many businesses. My feeling is that if you understand what underpins this, and what you can do with this, then it is a big opportunity. But I also think a lot of companies are gonna get eaten up by this technology."
Lane touched on a recent controversy involving AI-generated content between FXStreet and Investing.com. He cited the broader trend of AI disrupting the news industry and the challenges it poses. Lane warned that as AI models grow more sophisticated, the traditional news industry must adapt or risk obsolescence.
“It's happening. You see the New York Times suing OpenAI. I think it very much leads into what we were talking about before, how the industry is going to be disrupted by the ability for people to create their own newsfeeds using Large Language Models. And I think that poses a massive threat to news organisations. So this argument is just a part of that overall issue."
The rise of prop trading and the flight from regulation
Discussing broader industry trends, Acuity Trading’s chief executive identified Latin America, particularly Mexico, Colombia, and Brazil, as key growth markets. He noted a significant interest in accessing these markets despite regulatory complexities.
Lane also highlighted the rise of proprietary (prop) trading, which he finds increasingly fascinating. Prop trading, he mentioned, is generating significant volumes and surpassing traditional brokerage activities in some cases. He sees prop trading as a dynamic and rapidly evolving area, though not without its share of challenges and "bad actors."
"So what I hear a lot is the countries being mainly Mexico, Colombia, and Brazil, but there's also a lot of mix-up and unwritten misunderstanding around how they can access these markets and the regulation and so forth. It's not my area of expertise, but there's a lot of confusion where there's a lot of desire to get into these markets. And the event itself [iFX EXPO LATAM 2024] is a lot busier than I expected today. It's definitely booming and it's really interesting.”
Lane shared his views on regulation, suggesting that overly stringent regulations in regions like Europe could drive innovation elsewhere. He pointed out that traders’ desire to engage in various forms of trading might lead to the development of alternative solutions as regulations tighten.
"We've seen lots of bubbles. Over the years, we've seen binary options, cryptos, FX, spread betting, etc. This is interesting [...] And one thing I do feel, and I heard, is that people want to trade, they want the feeling of being able to trade intraday and such, and the more regulators clamp down on it, the more people innovate and find different ways of giving what people want. And so there's this balance...
...what I hear from brokers in Europe is that it's been over-regulated, especially in the UK. And it just pushes people into different hands and different innovations. So I don't know whether regulation is healthy in this instance."
The interview at iFX EXPO LATAM 2024 provided valuable insights into Acuity's strategic initiatives and broader industry trends. Lane's expertise and forward-thinking approach underscore Acuity's position as a leader in integrating AI within the trading sector.
Acuity’s tech analyses an array of market insights to generate trading ideas and gauge market volatility. Other Acuity Trading products include NewsIQ, AnalysisIQ, AssetIQ, the Acuity Corporate Calendar, and AI-Driven Economic Calendar, which have earned Acuity Trading the title of ‘Best Specialist Data Provider’ at the Technical Analyst (TA) Awards, ‘#1 Sentiment Analysis Provider 2024' by Forex Brokers and many shortlisted nominations across the fintech industry. For more on the unparalleled edge that Acuity’s data-driven research provides, explore further resources and solutions at acuitytrading.com.