22 October 2017
visit www.atos.net

Investment banks face turf war with global exchanges - report

07 June 2006  |  7524 views  |  0 globe swirly

By 2015 the world's leading exchanges will be competing directly with investment banks as they look to identify new avenues for growth and profits, according to a global capital markets study conducted by Datamonitor and released by BearingPoint.

The study suggests that the stock exchange consolidation happening today is a precursor to migration by exchanges into the traditional world of investment banking. As public companies, exchanges will increasingly look to the investment banking business to drive profit growth, says the report.

Peter Horowitz, managing director of Bearing Point financial services says the list of the top 10 investment banks and brokerages has changed every 10 years due to consolidation and heightened competition from commercial banks.

But during the next 10 years, exchanges will be added to the list of big investment banking and brokerage players.

"We can expect to see an even more dynamic shift over the next 10 years as exchanges, which are searching for profits and growth more aggressively than ever before, muscle their way onto the playing field," he says.

The merging of exchanges could also lead consolidation of clearing and back office functions, which would become utility businesses, says BearingPoint.

As a result of the threat, Horowitz says sell-side firms will begin using technology to both capitalise on alternative revenue opportunities and identify new ones.

Capital markets firms will need to use technology to formulate more detailed client profiles than ever before, says Bearingpoint, enabling companies to deliver highly-customised products and services to more effectively meet client needs.

Chris Formant, executive vice president, global financial services, BearingPoint, says: "The capital markets industry will combine customer data and technology to create 'designer' investment vehicles to serve individual client needs."

The study also predicts that middle and back office functions will be reconfigured into massive processing utilities, leaving capital markets firms focused on the front end, and as larger firms require more nimble IT support, service oriented architecture will become essential.

Comments: (0)

Comment on this story (membership required)

Finextra news in your inbox

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

Related stories

Nyse clinches Euronext deal

Nyse clinches Euronext deal

02 June 2006  |  9087 views  |  0 comments
Nasdaq raises LSE stake to 25.1%

Nasdaq raises LSE stake to 25.1%

19 May 2006  |  9493 views  |  0 comments
Nasdaq raises LSE stake

Nasdaq raises LSE stake

03 May 2006  |  8117 views  |  0 comments
UK leads Europe for bank IT spending - Datamonitor

UK leads Europe for bank IT spending - Datamonitor

05 April 2006  |  13848 views  |  0 comments
European market users call for break-up of siloed exchanges

European market users call for break-up of siloed exchanges

20 February 2006  |  9170 views  |  0 comments
Retail banks moving toward SOAs - BearingPoint

Retail banks moving toward SOAs - BearingPoint

18 October 2005  |  10844 views  |  0 comments
European banks to increase IT spending on e-banking

European banks to increase IT spending on e-banking

24 June 2005  |  7538 views  |  0 comments

Related blogs

Create a blog about this story (membership required)
visit www.vasco.comvisit www.fivedegrees.nlRegister now

Top topics

Most viewed Most shared
HSBC partners Bud for open banking trialHSBC partners Bud for open banking trial
10720 views comments | 22 tweets | 26 linkedin
Mastercard to roll out blockchain APIMastercard to roll out blockchain API
10409 views comments | 17 tweets | 24 linkedin
satelliteGates Foundation backs Ripple collaboratio...
9122 views comments | 13 tweets | 10 linkedin
IBM uses blockchain to improve cross-border payments processingIBM uses blockchain to improve cross-borde...
8182 views comments | 9 tweets | 17 linkedin
Sibos 2017: API or the highwaySibos 2017: API or the highway
8028 views comments | 10 tweets | 22 linkedin

Featured job

Competitive base + commission + benefits
Denmark, Finland, Iceland, Norway or Sweden

Find your next job