Profitability will suffer for all but the technology-driven trading firms, and institutional firms' market risk will increase from elevated market volatility. Higher interest rates will help retail firms' profitability but may hurt traditional institutional firms' funding costs. Regulatory reforms on payment for order flow (PFOF) and market structure are likely to be introduced, but nothing big will be implemented in 2022. Despite these potential headwinds, ratings will remain largely stable, with most firms maintaining solid capital and liquidity.