Sell-side brokers leading on automation are best situated for high-volume, high-volatility markets -- not necessarily because of the automation per se, but because the automation chops wood that the trader then doesn’t have to, enabling the sales trader to provide more personalized service to clients when they may need it most.
Going forward, sell-side firms will continue to increase automation over time, both by increasing the percentage of order flow being automated, and expanding into more bespoke asset classes such as municipal bonds and repurchase agreements, or repos. The primary motivation is top-line growth, rather than cost reduction.