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Buy-Side Tech Spend in Focus – Markets Media 

Full Article: Markets Media

According to a recent report from Greenwich Associates, institutions are allocating their increasingly scarce resources to fixed income pursuits and technology

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  • Slider
    SliderMarch 10, 2017"5% YOY increase in spend allocation into technology is good but I fear that with rising rates and a more liquid/robust Fixed Income market, people may get comfortable again with business as usual leading them to be flippant regarding technological innovation. To realize the importance of technology in this market, participants have to see a clear increase in the bottom line or be exposed to products they simply can't live without like smartphones in the consumer space…"
  • Goose
    GooseMarch 10, 2017"Recognition that you need to increase spending on technology is a good start. I absolutely agree that your OMS is a good place to focus that increase. Slowly but surely, progress is being made in allowing asset managers to aggregate the information they want without needing the blessing of the data originator. The article states that the average buy side desk for comp and tech is $35.8 million. 3% growth split evenly among the two is a total of $538,000 for technology…"
  • Wolfman
    WolfmanMarch 10, 2017"I think the big story here is the focus on reducing the cost of terminals in order to allocate greater resources to other technologies like OMS. The 900 pound orange and black gorilla won't go away easily and will continue to develop added value to their user base. The ability for new technologies to develop solutions away from them isn't simply a technical question but a network question. Don't count them out just yet. What I would have liked to have learned from thi…"

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Wolfman
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I think the big story here is the focus on reducing the cost of terminals in order to allocate greater resources to other technologies like OMS. The 900 pound orange and black gorilla won’t go away easily and will continue to develop added value to their user base. The ability for new technologies to develop solutions away from them isn’t simply a technical question but a network question. Don’t count them out just yet. What I would have liked to have learned from this article is how the DIFFERENT buy-side firms are dealing with this. Once again, the buy-side is… Read more »
Goose
Member
Recognition that you need to increase spending on technology is a good start. I absolutely agree that your OMS is a good place to focus that increase. Slowly but surely, progress is being made in allowing asset managers to aggregate the information they want without needing the blessing of the data originator. The article states that the average buy side desk for comp and tech is $35.8 million. 3% growth split evenly among the two is a total of $538,000 for technology. Buy side firms had better know exactly what they want, how to build it, and what it costs… Read more »
Slider
Member

5% YOY increase in spend allocation into technology is good but I fear that with rising rates and a more liquid/robust Fixed Income market, people may get comfortable again with business as usual leading them to be flippant regarding technological innovation. To realize the importance of technology in this market, participants have to see a clear increase in the bottom line or be exposed to products they simply can’t live without like smartphones in the consumer space. An environment in which regulation forces innovation is not an inspiring environment at all.

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