Financial industry association Isitc is reporting deep cuts in IT and staffing at member firms as the global economic crisis bites.
Isitc (International Securities Association for Institutional Trade Communication) says a poll of its members reveals that 69% consider reduced IT budgets are having the biggest impact on their firms as a result of the crisis.
Reduced headcount is cited by 74%, while 25% say their firms have been affected by increased compliance requirements and 23% name greater trading volumes. Additionally, 46% of respondents agree market volatility is creating clearing and settlement challenges for their firms.
The survey also reveals a strong desire for greater regulation, with 61% believing increased government oversight is more effective in resolving the financial crisis, while only 14% want less. In particular, 81% of respondents support regulation of pricing agencies, as opposed to 14% against.
Much of this focus on regulation is in recognition that the industry need to regain the public's trust, says Isitc. Comments such as "loss of faith in our markets," "restoring confidence" and "delivering quality products in a challenging time" were common from respondents.
Finally, as companies look to cope in the crisis, the first priority identified by respondents for their firms is operational risk management, followed by cost reduction and increasing efficiency in order to meet client needs.