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Trading Technology

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Demand for New Trading Technology Rising Globally

In the New York Tri-State Area, spend on trading applications is rising 10 percent per year.

The demand for new trading technology will continue to grow in the coming years. According to a new report from Somerset, U.K.-based Kimsey Consulting, the global market for trading technology will jump a total of 7 percent by 2010, adding about 25,000 trading workstations to the existing half million worldwide. The increase will be driven by developing markets in Asia-Pacific, such as India and China, and parts of Europe, as well as the rise in algorithmic trading.

The global market for trading technology currently consists of more than 65,000 firms, according to Kimsey, which surveyed firms in more than 50 countries that had a total of 20,000 floor-based trading positions and another 6,000 off-floor trading positions. The largest single market is the U.S., with more than 31,000 firms and more than a quarter million trading workstations, Kimsey says. Europe is second, with around 16,000 firms and 165,000 workstations.

In a separate study, Kimsey found that spend on applications and trading telecoms/turrets in the New York Tri-State region -- the single biggest market in the world for trading technology -- is currently rising at a rate of 10 percent per year. Total spend on trading applications, telecoms and turrets currently is estimated at $5.9 billion per year, according to Kimsey.

In addition to the rise in algorithmic trading, Kimsey reports that spend on trading technology also will increase due to the growing number of trading operations -- around 20 percent -- that will be ready for a technology upgrade over the next 18 months.

Melanie Rodier has worked as a print and broadcast journalist for over 10 years, covering business and finance, general news, and film trade news. Prior to joining Wall Street & Technology in April 2007, Melanie lived in Paris, where she worked for the International Herald ... View Full Bio

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