Content provided in partnership with

Business Services Industry

TowerGroup: Targeted IT Spending by Brokerage Firms Can Drive Revenue and Gain Order Flow During Credit Crisis

Business Wire, May 5, 2008

NEEDHAM, Mass. -- The current credit crunch continues to foster volatility across the financial markets and negatively impact brokerage firms - as write-offs taken by brokerage firms to date climb above the $181.5 billion mark. Yet in the face of this continued uncertainly, new research from TowerGroup asserts that targeted IT spending by brokerage firms can drive revenue in new asset classes and geographies, and gain order flow during periods like this of market volatility.

Most Popular Articles in Business: Research and Markets : Tesco Plc - SWOT Framework Analysis; Do Us a Flavor - Ben & Jerry's Issues a Call for Euphoric New Flavors; eBay made easy: ready to start an eBay business? These 5 simple steps will ...; Katrina's lawsuit surge: a legal battle to force insurers to pay for flood ...; Wal-Mart's newest distribution center opened last month near the southwest ...; More »

The financial services industry has long been locked in a love-hate relationship with the electronic trading tools and peripherals required to maintain parity in the current technology arms race. Yet key opportunities for growth in today's challenging environment require investment in global 21st century trading infrastructure. Two examples of opportunities that require strategic IT investment are: the rapid rise of the carbon offset trading market (growing from approximately $10 billion USD in 2005 to $40 billion in 2007); and the growth of global securities industry revenue from Brazil, Russia, India, China, and Korea.

Economic uncertainty means that financial markets now react to each new announcement, whether good or bad - thus creating volatility that can be exploited to drive order flow. TowerGroup reminds brokerages that their clients will continue to seek ways to take advantage of market conditions - and will look to the brokers either to supply additional tools or at the very least to keep up with order flow. Clients will be quick to realize which broker has kept pace with required technology and will direct their business accordingly.

TowerGroup believes brokerages should allocate their IT budgets in three primary areas, market data content and infrastructure, trading tools and risk management. Focusing on these areas will create opportunity for institutions by increasing transaction volume across businesses.

The TowerGroup report, titled "Credit Crunch Opportunity: IT Spending Imperative in a Time of Crisis," by Tom Price, a senior analyst in the Securities and Capital Markets research practice, explores the market volatility resulting from the credit crunch and the opportunities available to increase transaction volume through strategic use of IT.

The report is available to qualified members of the press for review. To request a copy or to arrange an interview with Mr. Price, please contact Thea Linscott at +1.917.595.3061 or tlinscott@cooperkatz.com.

Sign up for the bi-weekly newsletter, TowerGroup News, to stay informed on the latest research and events. To learn more, visit: http://ui.constantcontact.com/d.jsp?m=1101074606706&p=oi

About TowerGroup: TowerGroup is the leading research and advisory services firm focused exclusively on the financial services industry. A respected source for trusted information and advice, TowerGroup brings many of the world's leading financial institutions, technology companies, and professional services firms a deeper understanding of the business and technology issues impacting their organizations. Headquartered near Boston in Needham, Massachusetts, and with offices in North America and Europe, TowerGroup serves a global client base. Visit www.towergroup.com for more information.

Business Services Industry

TowerGroup: Targeted IT Spending by Brokerage Firms Can Drive Revenue and Gain Order Flow During Credit Crisis

Business Wire, May 5, 2008

Find Research Guides for:

Find Featured Titles for: News

Most Popular Articles in Business

Most Popular Publications in Business