Wall Street Horizon recently unveiled the results of its annual survey, delving into the intricacies of trading and risk in June 2024. The survey, boasting a pool of executive-level respondents from prominent institutional firms, traders/investors, and portfolio managers, shed light on crucial aspects.
Top Corporate Event Types
One notable discovery from the survey was the paramount importance ascribed to earnings announcements and earnings announcement changes by respondents. These two event types clinched the top spots in terms of significance, emphasizing the critical role they play in guiding trading decisions.
Consequences of Incorrect Earnings Dates
It was revealed that approximately 24% of respondents faced losses attributable to errors in earnings dates. This misstep led to various repercussions, with a sizable proportion citing a mistimed investment, an impacted trading strategy, or a compromised risk strategy.
Risk Priorities
Geopolitical risk emerged as the foremost concern among respondents, capturing the attention of 55% of participants. This was followed by worries concerning macroeconomic risk, which warranted significant consideration, standing at 25% in the survey results.
Shifting Concerns from Previous Years
A telling shift was observed in risk concerns compared to the previous year, signifying a changing landscape. The focus had transitioned from macroeconomic risk to geopolitical risk, possibly influenced by external factors like the upcoming US election and global unrest.
Regulatory AI Risk
Concerns around regulatory risks associated with AI deployments in investment processes were prevalent among respondents. A majority (57%) expressed apprehension, underlining the need for vigilance in navigating the evolving regulatory environment.
Data Accuracy and Completeness
Feedback from respondents highlighted the accuracy and completeness of data from providers as a prominent pain point in the corporate event domain. Addressing gaps and ensuring data reliability emerged as a key focus area moving forward.