The Tabb Group study, which questioned 178 traders in the US, the UK and across Europe, said outlay on OMS and EMS platforms will decline by 13 percent and 11 percent respectively between 2007 and 2009, with recovery not expected until 2012.
Approximately half of the buy-side firms questioned said they are considering changing either their OMS or EMS platform, despite the complexities this can entail, the report noted.
Enhanced performance was given as the main factor behind swapping an OMS, while system consolidation was the main reason for changing an EMS.
Tabb Group director of research Adam Sussman said: "Tools to help manage volatility, counterparty risk and the rapidly changing regulatory landscape will take centre stage, as the ability to help deal with these newly prioritized issues will become significant differentiators."
Founded in 2003, Tabb Group offers research and advisory services focused on financial markets, mergers and acquisitions and business continuity.