Nasdaq’s 2024 Global Retail Executive Forum took place at their global headquarters in Times Square on June 13. CEOs and other executives from key global trading firms attended and presented their insights.

MarketReader Co-Founder and CEO Jens Nordvig moderated a panel during the conference on the topic of financial literacy and education using AI technology. He presents his four key take-aways below:

Smart Content Is Key To Engaging Users.

The global community of traders is expanding very fast. But the competition is also heating up. Hence, trading platforms, wealth managers and information providers (such as trading communities) increasingly need to differentiate themselves with content.

One insights from Nasdaq’s annual investor survey (formally out this week) was that the preferred type of content to learn about potential investment is via ‘short-form articles’ (as that is exactly the content we create at MarketReader, this was nice to see documented so clearly); the number 2 on the list was ‘videos longer than 2 minutes’, while the least popular content was ‘webinars longer than 30 minutes’ (no surprise there!)

In general, there was a broad consensus among executives from the industry that providing timely, digestible content is key, and that it has to be tailored to the specific language/culture of the audience in question (local language, focussed on the clients specific interest, and presented in a style that fits the user group.

Relatedly, different user groups put different weight on different parts of the experience, with young traders putting a lot of weight on community, and learning from peers (think GME trading).

MarketReader CEO Jens Nordvig moderated a panel on the topic of “The Opportunities & Challenges of Financial Literacy and Education”

Executives Are Focused On the Use Of AI.

Several executives conveyed how they are already realizing huge productivity gains using AI. The areas mentioned most often were client onboarding and customer service.

There is also a lot of experimentation in motion with using AI in content creation. Both in terms of the actual content, and in terms of funneling the right content to specific user groups. 

Some concern was expressed about excessive regulation in this space, especially in relation to how AI content would be dealt with in relation to financial advisors, and satisfying compliance requirements.

But generally, it was viewed as important to be able to source certain content to an external provider, to have a separation between internal and external content. And in general to differentiate between human-curated content and a new class of AI-supported content.

New Products For a New Generations of Traders

Three areas were discussed in terms of new product:

First, we had a lot of discussion about the need for 24 hour trading in US markets. There is exploding demand from overseas, and the restricted trading hours are holding back activity. Further, more and more retail traders are looking to execute in the US evening, particularly younger generations of traders that are used to 24/7 access to their favorite apps and have this habit from crypto trading (this article goes into more detail and quotes some of the conference participants)

Second, there has been an explosion in option trading on many platforms, especially very short-dated options. This shift is related to a new generation of traders entering the market. After the Global Financial Crisis, there was a long period of ‘conservatism’ in trading. But a new generation of traders have now entered the market, with much more risk appetite (appetite for options, appetite for volatility, appetite for experimenting). Many executives argued that they are embracing this via a focus on education.

Third, fixed income demand is about to accelerate. Some US trading platforms have already seen an explosion in demand for fixed income instruments, and many players are looking to follow on a global basis. And the invention of fractional trading in FI space will be a part of facilitating access to fixed income products for retail traders. And it will be a key part of diversification, which is important to the sustainability of growth.

MarketReader CEO Jens Nordvig and CTO Web Begole participated in Nasdaq’s bell closing ceremony at MarketSite in Times Square

US-Centric Product Focus, Globally

The US market is a key focus globally. The most interesting tech companies are in the US. The best liquidity is in the US. The young traders, around the world, are focused on new trends, such as in semiconductors, and the leading companies are in the US.

In many markets around the world, the US share is growing, and the domestic share is shrinking. Many think this trend will continue, as the US continues to see incredible growth in key industries, and is at the forefront of AI.

Even within fixed income, rates are generally more attractive in the US, and liquidity is also better. Hence, the fixed income expansion is happening also with a US focus.

 

MarketReader is excited to be at the forefront of AI-assisted content generation for US stocks, ETFs and macro instruments, and we are looking to add more global assets in H2 2024. We are happy to partner in that regard, so please contact us for more information. 

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