TradeTech Paris 2025 – A jubilee event to remember

Key Takeaway

• The AI revolution in trading is no longer a theoretical concept but a reality, requiring keen ethical considerations and regulatory scrutiny.
• Without robust, end-to-end automation, the global push towards T+1 (next day) settlement and potential future shift to T+0 (same day) settlement will be practically impossible to achieve.
• Technology remains the most significant enabler, driving efficiency, reducing costs, and expanding market participation.
• Modern traders will need new skills to make optimal use of the technological advancements and other innovations within the industry.

TradeTech Paris 2025, held from 13–15 May at the Palais des Congrès, marked a significant milestone – the 25th anniversary of Europe’s premier trading conference. This silver jubilee edition was the usual forum for discussions on the most critical issues shaping the future of global trading. With a dedicated Buy-Side Innovation Day kicking off the proceedings, the conference served as a powerful retrospective on a quarter century of market evolution while firmly setting the agenda for the years to come.

The sentiment at TradeTech Paris 2025 was a blend of celebration for past achievements and a focus on the dynamic challenges and opportunities that lie ahead. The historical content from “The TradeTech Daily Archive” served as a reminder of the conference’s consistent relevance, highlighting the industry’s continuous adaptation to regulatory shifts, technological advancements, and evolving market structures. The discussions constantly reinforced the idea that technology remains the most significant enabler, driving efficiency, reducing costs, and expanding market participation.

Here is a breakdown of the topics that dominated the conversation at TradeTech Paris 2025.

The maturing AI revolution in trading

Once again, the most prevalent theme was the application of Artificial Intelligence (AI) to trading. But, instead of exploring theoretical concepts, the focus was firmly on real-world application and effect.

AI for enhanced TCA and execution – Discussions highlighted how advanced machine learning (ML) models are revolutionizing Transaction Cost Analysis (TCA). Presenters highlighted how AI moves beyond traditional categorization, using real-time data and historical execution patterns to identify intricate cost drivers and inform more intelligent algorithm selection and fine-tuning for manual orders. The concept of “intelligent clustering” for better data utilization in TCA was a recurring point.

Generative AI and the evolving trader skillset – The impact of generative AI on automating routine tasks like data synthesis and initial research was a hot topic. This led to in-depth discussions into how the human trader’s role is evolving, demanding new competencies in data science, quantitative analysis, coding, and adaptability. Panelists were in agreement that AI is not replacing traders but redefining their value proposition.

Data quality and ethical AI deployment – The foundational importance of clean, integrated data for effective AI models was repeatedly stressed, echoing the “garbage in, garbage out” principle. There was also significant emphasis on the ethical considerations and regulatory scrutiny surrounding autonomous AI decision-making, particularly concerning potential biases, and explainability.

Navigating market fragmentation and the elusive consolidated tape

The persistent challenge of fragmented liquidity in European markets remained a central and often heated discussion point.

Renewed push for the consolidated tape – Despite years of discussion, the European Consolidated Tape was once again a major topic. There was a sense of renewed urgency and detailed discussions on the practicalities and remaining hurdles to finally implementing this crucial transparency tool. Participants explored various models and spoke about regulatory approaches to accelerate its implementation.

Impact on price formation of bilateral trading and SI growth – The ongoing growth of bilateral streaming models and Systematic Internalizers (SIs) generated significant debate. The discussions centered on their implications for public price formation, market integrity, and the balance between transparency and flexibility. Euronext’s “Auction Volume Discovery” (AVD) was presented as an innovative mechanism to enhance liquidity at key trading junctures while preserving market integrity.

Optimizing for addressable liquidity – Traders shared insights and challenges in effectively identifying and interacting with fragmented addressable liquidity, and how these dynamics are impacting execution performance and overall market efficiency.

The T+1 settlement imperative and the road to T+0

The global push towards T+1 (next day) settlement was a hot topic, with significant focus on the operational shifts required.

The absolute necessity of automation for a smooth T+1 transition was a universal consensus, with panels highlighting how firms are using technology in their middle- and back offices to mitigate increased costs and operational risks, particularly concerning settlement mismatches.

Participants extensively reviewed the US experience with T+1, sharing best practices, identifying common pitfalls, and providing a roadmap for European firms.

Looking beyond T+1, several discussions explored the implications and requirements for a potential future shift to T+0 (same day) settlement, underscoring that without robust, end-to-end automation, such a move would be practically impossible.

Unlocking Europe’s retail investing potential

A strong and consistent thread through the conference was the imperative to unlock the significant, yet largely untapped, potential of European retail investors.

Regulatory reform and investor education – Experts passionately debated necessary reforms in tax rules and significant enhancements in investor education to encourage greater retail participation. There was recognition of the increasing sophistication of younger retail investors that will require a more tailored approach from investment firms.

Product innovation for accessibility – The development and utility of mini- and micro-sized contracts, along with simplified settlement processes, were highlighted as key areas to address. Examples like Euronext’s mini futures on government bonds and daily options were showcased as effective ways to make sophisticated financial products more accessible to the retail segment.

Developing the expert team and future-proofing talent

Beyond technological advancements, the human capital aspect of trading received considerable attention.

Evolving skillsets for the modern trader – Discussions outlined the blend of soft skills (integrity, curiosity, adaptability, passion) and hard skills (quantitative analysis, market knowledge, data competence, coding) essential for the next generation of trading professionals.

Mentorship, sponsorship, and cross-asset upskilling – The panels stressed the importance of robust internal development programs, including formal mentorship and sponsorship. Firms discussed strategies for encouraging traders to develop expertise across various asset classes (equities, bonds, FX) to better navigate fragmented liquidity pools and optimize holistic execution strategies.

Innovation spotlights – practical solutions in the digital age

Beyond the high-level discussions, TradeTech Paris 2025 also provided a platform for showcasing concrete innovations.

Advanced risk management – New trading risk management tools for real-time risk assessment in trade and logistics were presented, aimed at accelerating low-risk flows while enhancing scrutiny of higher-risk transactions.

Interoperable automated systems – The drive towards agreed standards and interoperable, often blockchain-based, infrastructure for seamless cross-border data exchange was a key focus, with initiatives like “Trade Worldwide Information Network (TWIN)” gaining traction.

Continuous exchang product development – Exchanges like Euronext detailed their latest product offerings, demonstrating how continuous innovation in financial instruments aims to improve accessibility and liquidity for diverse market participants.

A collaborative vision for the future

As TradeTech Paris celebrated its quarter century, the overriding message was one of strengthened collaboration. The complex and interconnected nature of today’s financial markets requires a unified approach from buy-side and sell-side firms, regulators, and technology vendors. The conference consistently underscored the collective responsibility in maintaining market integrity, driving meaningful innovation, and ensuring a fair, transparent, and resilient trading environment for all.

The conference was a forward-looking dialogue that provided invaluable insights and outlined possible innovations to continue the industry’s move towards greater transparency and more efficient trading cycles. When you factor in the immense opportunities presented by the rapidly expanding AI segment, the future appears poised for some remarkable developments.