Tabb Group, research and advisory services company, has conducted the study to indentify companies’ priorities in line with current cut in IT spending. The survey showed that spending on equity-focused order management systems (OMS) and execution management systems (EMS) is set to continue falling this year as firms change their systems in order to rationalize their trading platforms.
The Tabb Group study questioned 178 traders in the US, the UK and across Europe. The results revealed that outlay on OMS and EMS platforms will decline by 13% and 11% 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.
“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,” says Adam Sussman, director of research, Tabb Group.
L.D.