Expenditure on Trading Applications and Trading Telecoms/Turrets is rising at 10% p.a., according to the latest Kimsey Consulting US Tri-State Trading Technology Study. Total spend on trading technology in the New York Tri-State region is now 5% higher than 12 months ago, running at an estimated USD$5.9 billion p.a.
Independently researched and published by market research and advisory services company Kimsey Consulting, The US Tri-State Trading Technology Study provides a detailed review of the state of the trading technology sector in one of the worlds most important financial regions.
Trading technology expenditure in the New York region is forecast to continue growing in the coming years, driven in part by the increasing number (around 20% over the next 18 months) of trading operations now entering a technology refit/upgrade stage.
The US Tri-State Trading Technology Study covers a wide range of topics; from dynamics of the trading environment, through technology sectors such as market data, newswires and applications. Amongst the 60+ survey questions, respondents are asked to score their satisfaction with vendors/solutions used.
Vendor Achieving Highest Customer Satisfaction
Market Data - GL best overall
Thomson Financial - Best of the “Big 3” IP’s
Newswires - Dow Jones Newswires
Trading Turrets - IPC
Trading Platform - BondDesk
Trade Capture - Trading Technologies
Trading & Risk Management - SunGard Front Arena Portfolio & Asset Management -SunGard Asset Arena Analytics - Townsend Analytics Back Office - OpenLink
Amongst other findings in the 1100+ page study:
Voice trading accounts for just over half of transactions, marginally down on 2006 Continued growth in trading volumes particularly amongst larger trading institutions – apparently taking an increasing share of market – algorithmic trading a clear driver Almost three quarters of firms now regard Voice over IP as a suitable technology solution for the trading floor, compared to around two-thirds in 2006. The most important source of information on trading technology is “Word of Mouth”.