Thomas Peterffy, the Founder and Chairman of Interactive Brokers, shared insights on CNBC regarding market trends following Donald Trump’s recent election victory. Broker stocks, including Interactive Brokers, saw significant gains as part of the broader market rally.
Favorable Regulatory Environment Boosting Market Prospects
Peterffy noted that while the surge may not be entirely justified, a more favorable regulatory landscape is likely to drive market activity in the future. “We are looking at a much better regulatory environment, which will provide significant support for the markets,” he said.
Growth in Overnight Trading Liquidity
Discussing the evolution of trading patterns, Peterffy highlighted the increasing significance of overnight trading. He predicted that liquidity in overnight markets will soon rival that of traditional daytime trading. “In just a few years, trading liquidity will be consistent 24 hours a day, with no significant difference between day and night trading,” he stated.
Prediction Markets Set to Surpass Equities
Peterffy expressed optimism about the growth potential of prediction markets, a product launched by Interactive Brokers. He forecasted that these markets could eventually outgrow equities, with liquidity being the primary hurdle to address.
“This is going to become a massive market, potentially larger than the equities market in the next 15 years. The growth trajectory will be very rapid,” he remarked.
Interactive Brokers Expands to Dubai
In a move to meet growing demand in the Middle East, Interactive Brokers has opened a new office in the Dubai International Financial Center (DIFC). The new location aims to provide traders and investors in the UAE and Gulf Cooperation Council with access to global markets.
The DIFC office will cater to a diverse clientele, including active traders, high-net-worth individuals, hedge funds, and family offices. Clients can access over 150 global markets through a single platform that offers a wide range of asset classes. Interactive Brokers also holds a Category 4 license from the Dubai Financial Services Authority, strengthening its regional presence.
This expansion underscores the firm’s commitment to delivering financial solutions in response to the region’s increasing demand for global market access.
