Stronger-than-expected activity levels and volumes have reshaped the global markets in 2026—as well as the trading and execution landscape in the U.S., according to the region’s top firms.

In 2026, global markets remained shaped by an active macro backdrop—rate and policy uncertainty, geopolitical headlines, and shifting risk appetite, confirmed Luiz De Salvo, head of global cash equities trading at J.P. Morgan. “Elevated volatility emerged in pockets, repositioning became more frequent, and demand for liquidity remained strong,” he added. “Activity rose broadly across regions in 2026, with APAC a meaningful driver of the increase.”

Several themes supported higher volumes, including a robust M&A environment and the continued acceleration of AI-related investment, De Salvo said: “The AI theme fueled greater cross-border trading and hedging activity, contributed to record capital markets issuance, and drove elevated index rebalancing volumes.”

At Morgan Stanley, elevated trading volumes in 2026 strengthened the firm’s offering by highlighting the value of scale, technology, liquidity access and integrated client coverage, according to Shaun Fallon, head of execution services, Americas.

“As volatility, exchange-traded fund activity (ETF), artificial intelligence (AI)-related repositioning and portfolio transitions drove higher volumes across global markets, clients increasingly sought execution partners capable of handling larger orders, sourcing liquidity efficiently and minimizing market impact,” he said. “This environment played directly to Morgan Stanley’s strengths in electronic trading, portfolio trading, Delta One, ETF execution and high-touch trading.”

Higher volumes magnified the advantages of Morgan Stanley’s electronic platform and alternative trading systems, he added, where greater flow increases liquidity, helps improve execution outcomes and creates a more compelling value proposition for clients.

Those strengths were once again recognized by the respondents to Extel’s 2026 All-America Trading & Execution Team. Morgan Stanley was voted No. 1 for the second year, according to traders at asset management firms with investments in US equities who were asked to rate their brokers in 7 categories across trading and execution and by attributes.

J.P. Morgan also repeated its second-place finish. There was a slight reshuffling further down the leaderboard with Goldman Sachs up one position to secure third. BofA Securities took fourth, and Jefferies once again rounded out the top five.

This environment reinforced two priorities for J.P. Morgan, according to De Salvo: to continuously strengthen the capacity and resiliency of its electronic platforms so clients can rely on consistent performance through peak-volume days, and to continue evolving its platform, algorithm suite, and risk solutions—using data and analytics to improve adaptivity, transparency, and execution outcomes across differing market regimes.

“J.P. Morgan’s strength in trading and execution starts with how we organize around the client,” he said. “Sales and Trading stay closely connected so we can translate a client’s objectives, including liquidity needs, urgency, risk tolerance, and benchmark constraints, into the right execution approach. We reinforce that with strong day-to-day partnership across product, technology, and quantitative teams, continually improving liquidity access, analytics, and execution quality.”

On the platform side, J.P. Morgan continues to invest across its electronic and high-touch capabilities, as well as portfolio and program trading and ETF execution. “Our focus is consistent performance across market regimes and better outcomes across different order types and trading styles,” he said. “Underpinning all of this is ongoing investment in talent and a strong risk and controls culture, supported by real-time monitoring and disciplined risk management, including the use of select AI tools, so we can remain responsive when markets are moving quickly.”

Fallon credited Morgan Stanley's integrated firm approach as a key reason the firm has built one of the leading trading franchises. “We have connected the full capabilities of the firm to create a broader client network, deeper liquidity pools and more differentiated insights,” he said. “This allows our trading teams to see a wider range of flow, source unique liquidity and deliver institutional-quality execution across client segments ranging from the world's largest asset managers and hedge funds to family offices, corporate executives, and wealth clients.”

AI-driven automation is continuing to reshape both how top firms operate and how the U.S. trading ecosystem functions, according to J.P. Morgan’s De Salvo. “Internally, it helps us improve the trade lifecycle, enhancing pre-trade analytics, execution decisioning, post-trade controls, and client reporting, so teams can focus more on client needs and continue to improve the overall client experience,” he said.

Across the market, greater automation is contributing to faster price discovery and more dynamic liquidity, particularly during events and in periods of heightened volatility. “Our focus is to apply AI in practical, client-facing ways that improve efficiency and execution outcomes, supported by real-time monitoring and robust governance,” he added.

Activity levels in 2026 continue to be a welcome surprise, running stronger than expected across several areas of its franchise, according to Morgan Stanley’s Fallon.

“Adoption of quantitative and electronic trading continues to broaden as a growing number of clients shift flow toward systematic and automated execution, while penetration of Morgan Stanley Electronic Trading (MSET) is deepening within our existing client base,” he said.

Activity in exchange-traded funds remains a meaningful source of incremental volume, and high-touch block trading has provided additional opportunities as clients look to transact in size with minimal market impact. “We are also seeing expansion in alternatives, reflecting rising client demand for products beyond traditional asset classes,” he said.