Tech spending in the FS sector is being driven by the need to improve efficiencies and reduce costs rather than simply complying with new regulations. A new survey, IPC Trading Technology Investment Trend Survey, conducted by IPC Systems, highlights the top trading tech investment trends for FS firms in 2013.

Among the findings: investment in trading desk technology was named as the top priority for nearly one-third of firms, more than double the number of firms saying electronic or algorithmic trading technology was a top priority and that nearly half of firms surveyed listed the need to increase efficiency and reduce costs as the primary driver of their technology spending priorities. The survey polled more than 100 executives at global trading firms with nearly a quarter consisting of C-level respondents and 87 per cent indicating having approval or influence on technology spending decisions.

More than three-quarters of respondents said their firms are increasing trading technology spending in 2013, while only two per cent indicated they are cutting spending. Nearly half of firms said they will invest in technology to support electronic trading, but only 12 per cent said it was their top priority. Forty per cent of firms said they will be investing in technology for traders and the trading desk. And over all, 30 per cent said this area was a top priority. Other areas named as top priorities were technology for back offices, named by 16 per cent, network infrastructure, also named by 16 per cent and trading support technology with 14 per cent. High frequency trading was named as a top priority by 12 per cent and algorithmic trading by 11 per cent.

Firms are also looking to that new technology to be app-driven to help drive efficiencies and competitiveness. Fifty one per cent of respondents cited applications that offer greater integration of market data and trading communication systems as a key tool for success in 2013. Twenty nine per cent cited mobile applications as also being of interest in 2013 to increase productivity and transparency into the trading workflow.

Additional findings from the survey: 45 per cent of respondents view desktop trading applications as an area of investment in 2013; 28 per cent of respondents are seeking apps that offer greater collaboration between on/off floor traders and support staff; Nearly a third of firms say they will make investments to make traders more mobile and in doing so expect to see significant benefits in terms of efficiency, regulatory compliance or competitive advantage; 100 per cent of respondents either have implemented, are implementing or will implement in 2013 a cloud-based infrastructure on the trading floor.

Share Story: