An increased focus on electronic trading and regulatory demands means the securities industry is developing a serious interest in market data bandwidth, capacity, latency and location. As a result, firms are taking a fresh look at how to store massive amounts of data and retrieve it at tremendous speed – prompting excitement among vendors. Or so claims new research by TowerGroup.
Electronic trading, increased volume of quotes, and pending regulatory initiatives have realigned priorities regarding market data and are causing major shifts in this market, says the consultancy.
Over the next three years, TowerGroup believes market data infrastructure spending will increase by 7% as firms introduce technologies that satisfy the demanding needs of electronic trading. TowerGroup expects that during this span, bulge-bracket firms will begin to replace their legacy infrastructure with low-latency technology offered by both new and established technology providers.
Two new TowerGroup reports entitled, “Market Data Arms: Latency as the New Battleground,” and “Market Data Vendor Landscape: Content is Fuel but It’s What’s Under the Hood That Matters” by Tom Price, senior analyst for the Securities & Capital Markets research practice at TowerGroup, are available.