Trading Tech Spend, Market Data Volumes To Soar, Says TABB
Total US capital market spending on advanced trading technology will total $860 million this year, and reach $1.3 billion by 2010. So suggests analyst TABB Group in its new research report Trading at Light Speed: Analyzing Low-Latency Infrastructure.
Taking into account the effects of RegNMS, penny option pricing and MiFID, the volume of market data messages will rise from under 4 billion per day in 2006 to almost 130 billion per day in 2010, reinforcing the requirement for the components of advanced trading infrastructures to “get better and faster”, the analyst contends. It also forecasts a 34 per cent increase in demand for servers dedicated to high-performance computing, and says by 2009 sell side grid adoption will top 98 per cent.
According to the report’s author Jeromee Johnson “firms are relying more than ever on time-series analytics, complex event processing and more powerful automated trading engines, applications requiring a support infrastructure consisting of more servers, greater bandwidth, new messaging capabilities and lower latency networks”. Building an enterprise, ultra-fast trading infrastructure is a daunting task, he says, warning that while some vendors claim to provide end-to-end solutions, “few do”.
