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Bailey McCann, Opalesque New York:

Trade operations demand is hitting new highs and it is likely to keep going up. Citco Middle Office says the number of trade matching trades is up 74% year on year largely driven by 'Liberation Day' tariff news. Those trends are likely to continue as the Trump administration issued a new executive order changing reciprocal tariff levels for many countries again on July 31st.

Citco saw a 39% jump quarter on quarter in listed trade matching in the second quarter as volatility jumped across both equity and bond markets. In total, there were 603,318 listed trades, well ahead of the previous quarter and 66% higher versus the same quarter last year.

April was a key driver of Q2 volumes as market volatility spilled into the second quarter, with the S&P 500 seeing the largest one day gain since October 2008 post the subsequent tariff pause announcement. Volumes then returned to pre-March levels in the final two months of Q2.

The updated tariff announcement at the end of July came after market close but heightened activity in after hours trading was reported. Currencies also reacted to the news. Analysts expect further reaction in both equities and bonds during normal trading hours on Friday.

The volume and value of treasury transactions is already hitting a new high. Treasury transactions jumped 17% quarter on quarter in Q2, with April's figure of $246bn of transactions a record monthly high, and June's total coming in at $219b......................

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