Burton-Taylor estimates that Asia will lead all regions with a 20.3% increase in financial information and analysis spend, while Europe, Middle East and Africa (EMEA) will have grown 6.8%. By year-end, spend in the Americas will have dropped 9.6%, from 2007. Fixed Income/FX Sales & Trading remained the largest segment in each region but was flat year on year at US$6.47 billion. Although FX markets experienced growth, uncertainty in the credit markets kept the segment from showing positive movement. While Investment Management grew 5% and remained the second largest segment in the Americas and Asia, Equity Sales & Trading contracted 3% but continued to hold the number two spot in EMEA.
Regulatory and technology changes around the world have benefited the Corporate segment as companies take a keener interest in managing their treasury and external messaging functions. The segment grew 10% globally, with the strongest performances in EMEA and Asia.
The segment experiencing the most significant change was Investment Banking where bankruptcies and restructuring have reduced the size by almost 40%. The full revenue impact of structural and regulatory changes wonât be felt until 2009 and 2010 when vendors see a tangible hit on desktops and feel a quantifiable hit on contracted revenues.
âThe ânew worldâ of Investment Banking (IB) will be an interesting evolution in 2009,â says Douglas B. Taylor, Managing Partner of Burton-Taylor. âDeals will continue to be done, and the need for quality decision making tools will continue to exist. The uncertainty will be around the changes in information that might be required and the workflows of the participants as their roles evolve. Certainly boutique firms look to do well as they raise the quality of their teams by hiring the cream from the Street. The function of IB within the commercial banking sector, and more specifically the number of participants within the sector, will ultimately define the financial impact this segment has on global vendor revenue.â
âContinued growth in the Middle East, Asia, Eastern Europe and Latin American markets, coupled with higher demands for low latency and machine readable news and data feeds, will buoy the industry in 2009,â Taylor says. âBurton-Taylor will release our final 2008 figures and 2009 forecast in the first quarter of the new year but expect single digit growth in the industry next year, with Thomson Reuters continuing to hold the lionâs share of the market at about 34%. Although we estimate Bloomberg will have shown minimal revenue growth in 2008, we expect their market share to have increased slightly to 24%. The wait continues to see which other company will show the commitment and expertise to step up and complete the new âBig 3â.â