23 December 2014

Buy-side OMS spending to soar - TowerGroup

09 July 2008  |  6427 views  |  0 Computer virus

Global buy-side spending on order management systems (OMS) is set to rise from $450 million in 2008 to $699 million in 2012 - a compound annual growth rate (CAGR) of 12% - according to research from TowerGroup.

This is only slightly less than the 15% CAGR rate seen between 2002 and 2008 and compares favourably with growth of just seven to eight per cent for overall buy-side spending.

TowerGroup says, with rapid growth in trade volumes demanding that workflow become more efficient and effective, OMS applications have an increasingly critical role to play in the asset management business for traders as well as portfolio managers and operations staff.

After intense merger and acquisition activity over the last three years, OMS vendors have "emerged successful and deeply entrenched in the buy-side business", says the analyst house.

The US and UK markets may be saturated, but TowerGroup pinpoints strong growth opportunities for continental Europe, the Middle East, Asia including China and India, and South America.

Vendors that roll out new functionality to support derivatives trading and wealth management will extend their franchise into new areas and pick up significantly greater business in the next two to four years, says the report.

Last year TowerGroup also predicted healthy growth for buy-side spending on research technology, from $586m in 2007 to $1.1bn by 2010 - a CAGR of 22%.

Comments: (0)

Comment on this story (membership required)
Log in to receive notifications when someone posts a comment

Finextra news in your inbox

For Finextra's free daily newsletter, breaking news flashes and weekly jobs board, sign up now.

Related blogs

Create a blog about this story (membership required)

Related stories

31 March, 2008
02 January, 2008
26 October, 2007
18 October, 2007
01 December, 2006
23 February, 2006
16 December, 2004

Featured job

c.£80k base, bonus/commission, stock options, bene...
UK (London, South-East or Other)

Find your next job