A new report from Aite Group, LLC provides an overview of trends surrounding the creation of a high-performance trading/market data infrastructure. It lays out examples of how technology can be employed to provide a competitive trading advantage, and examines the vendors of such technology. Further, it looks at how some major broker/dealers are utilizing the available technology to develop a modern trading infrastructure, and evaluates several of the vendors in the space.
Tremendous growth in data volume has been brought on by an increased reliance on electronic and algorithmic trading, as well as recently enacted regulations that stress existing infrastructures in the front offices of global investment banks. However, technologies such as data normalization, complex event processing engines, messaging software and distributed cache have enabled firms to meet requirements and maintain a competitive advantage for trading. A number of vendors providing these technologies as packaged solutions have mitigated the need for costly and time-consuming systems development and maintenance. As the pressure to keep up with speed and market fragmentation continues, Aite Group expects IT spending on global market data infrastructure to reach US$7.8 billion by the end of 2010.
"Trading systems have not kept up with the growth in data coming at them," says Brad Bailey, senior analyst with Aite Group and co-author of this report. "The complexity of the high-performance infrastructure and the rapidity with which it evolves has created opportunities for specialized vendors."
The report provides profiles of key vendors providing solutions in messaging, market data, distributed cache, and ticker plant with detailed looks at ACTIV Financial, GemStone, GigaSpaces, RTI, Tervela, 29West, and Wombat.