Article on eFinancial where Celent are stating that Brokers will cut tech spend by 7%.
If you take into account that short-term tech spend will be up on risk management and various regulatory issues, where does this leave e-Trading and specifically FI e-Trading? At SIFMA the banks said the spend will be level…….hmmmm, it wasn’t convincing then and is less so now.
April 28, 2008 at 3:04 pm
My panel at sifma (mid February) concluded that the competing FI etrading consortia initiatives are not just the banks placing bets on every horse in the race; this is actually a clear demonstration of the sellside investment in the etrading future landscape.
Good spin
But if you project forward to closure of liquidity hub (end March) – what does that mean about the appetite (if not ability) for sellside to invest quite so freely in etrading initiatives?
Does sellside etrading spend now get prioritised on proprietary offerings? ie something to differentiate that bank rather than just line them up with n other banks offering the same product and orderflow?