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The future of financial markets

A large proportion of investors and traders active in the financial markets will sooner or later believe that their trades are at the center of a "rigged game". This belief today, when a huge number of people are active in the financial markets, is one of the most important risks for the future of the markets and society. One of the main reasons this belief can become prevalent is that investors and traders increasingly believe that they are not market participants, but followers of those who move it.

For retail investors and traders to avoid infected by this view, they will need to believe that they are actively participating in the challenges of the economy, entrepreneurship and society. Participation will be an essential driver and the fundamental value to trusting the markets in which are activated. At the end of the day, markets work effectively when investors and traders trust them as participants in them and in what markets represent.

Nowadays participation in the markets goes through the technology and infrastructures used by the markets. Financial firms should demonstrate to private investors and traders that their participation in the markets, and therefore the strengthening of trust, is done through embracing the latest technology and the resilience that technology offers them. This should be the priority, as by experiencing the technology and tools that are provided today to investors and traders, they will understand how the markets really work today. With the help of technology, investors and traders can understand their rights and obligations so that their interests are aligned with the financial markets and the financial companies that provide them with access to the financial products they invest and trade.

With the help of technology investors and traders can interpret the data in an understandable way for their own purposes. Financial companies will need to help make this data more transparent and more actionable for traders. The concept of where the data comes from, who has the right to it and finally what is the equality of the information derived from this data will be one of the central issues of the era that has already arisen.

Allowing investors to trade across a wide range of asset classes that diversify their risk is a critical step for the future of markets. Most investors and traders focus on the stock market, as relatively few trade the forex, commodity and crypto markets, as until recently these markets were out of reach for the average investor, but today this seems to be changing. Today, traders can have wide access to these markets, all that is needed is transparency about the risks and opportunities arising from participation in these markets as well as a proper use of financial tools and an understanding of the characteristics that they have these products in the traded markets.

In the future we will be called upon to deal with many important issues. Whether it's transitioning to climate change, geopolitical strife, increasing the flow of capital around the world, making sure that capital gets to the right people to do the right things that ultimately serve our society. And for this we will need new financial products, new services and new products that will serve these goals.

The ultimate goal will be for people to become co-owners of their society, and this will happen if they have the ability to invest and trade through participation in a transparent, fair and financially sustainable way using technology and the full spectrum of markets and products such as cryptocurrencies and new trading platforms.

The world of finance is expected to become even more exciting, with technology and participation playing a dominant role in its resilience and sustainability.

Author

Nikolaos Akkizidis

Mr Nikolaos Akkizidis is an economist, with 20+ years of experience in multiple roles in the financial sector.

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