25 February 2018
visit www.nextgenbanking.co.uk/

Business demands to outpace trading tech budgets in 2010 - Tabb

06 January 2010  |  10088 views  |  0 Digital Abstarct

Speed will continue to be the name of the game for US equity brokers in 2010 but business demands beyond latency may outpace trading technology budgets, according to a study from Tabb Group.

Tabb says that in addition to meeting increased latency reduction requirements, CIOs, CTOs and heads of technology at equity brokers are being asked to expand network capacity and make more efficient use of data centre space, with nearly half now consolidating or migrating centres.

According to the 24 sell side firms Tabb spoke to, cost and exchange proximity are the two primary drivers for sell-side selection of a data centre and over 60% now measure computer power utilisation in their centre.

Upgrades were the top infrastructure projects in 2009 with reliability and latency reduction the leading concerns for managers.

A major problem for many sell-side firms is keeping up with bandwidth requirements coming from exchanges and market data providers. Report author Kevin McPartland says: "It's not a matter of more efficient utilisation of bandwidth but simply having enough."

Meanwhile, with the average bulge bracket broker spending nearly $30 million annually on excess compute power, firms are now looking to increase utilisation of their share of the 93,000 sell-side servers running their US equities businesses.

McPartland argues that because a completely virtualised and highly utilised infrastructure is still years away for sell-side equities technology, a large gap exists between what is currently possible and actually done. In that same vein, cloud computing will be a part of equity IT strategies in the future but security concerns leave it more interesting than useful.

In conclusion, he says: "Operating data centres, servers and networks with the utmost efficiency will not be a trend but the only way to do business. In 2010, the winning brokers will be those that not only have the latest and greatest technology, but can manage it most efficiently."

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

US futures markets in crosshairs of algo revolution - Tabb

US futures markets in crosshairs of algo revolution - Tabb

17 November 2009  |  7038 views  |  0 comments
After worst year ever, IT spending to rebound in 2010 - Gartner

After worst year ever, IT spending to rebound in 2010 - Gartner

20 October 2009  |  9830 views  |  0 comments
Buy side shys away from block crossing as volatility increases - Tabb

Buy side shys away from block crossing as volatility increases - Tabb

03 December 2008  |  9172 views  |  0 comments
Hedge fund IT spending set to plummet

Hedge fund IT spending set to plummet

29 October 2008  |  9225 views  |  0 comments
Crunch to squeeze sell side spending on technology

Crunch to squeeze sell side spending on technology

23 April 2008  |  8830 views  |  0 comments

Related blogs

Create a blog about this story (membership required)
Visit http://info.nice.comVisit https://www.capgemini.comRegister for the webinar

Top topics

Most viewed Most shared
Ripple makes new connections to emerging marketsRipple makes new connections to emerging m...
12516 views comments | 16 tweets | 10 linkedin
hands typing furiouslySome Interesting Applications Of The Inter...
10741 views 4 | 9 tweets | 1 linkedin
Basel Committee outlines disruptive fintech scenariosBasel Committee outlines disruptive fintec...
9193 views comments | 15 tweets | 26 linkedin
Investment Association sets up fintech accelerator for asset managersInvestment Association sets up fintech acc...
8572 views comments | 19 tweets | 10 linkedin
R3 creates Legal Centre of Excellence for blockchain technolgyR3 creates Legal Centre of Excellence for...
8386 views comments | 11 tweets | 14 linkedin

Featured job

Find your next job