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By 2011 there are forecast to be around 12,000 fewer trading positions globally, according to a new report and analysis from Kimsey Consulting - Global Market Analysis and Forecasts – Trading Technology.
Continuing fall-out from the US sub-prime mortgage market, and collapse of the credit markets are key factors driving change in the global market for trading technology, particularly in North America and Western European where markets are forecast to have 20,000 fewer trading positions by 2011.
The extent of the forecast reduction would be significantly larger if not for continued expansion of financial, commodities and energy trading sectors in regions such as Eastern Europe, the Middle East and Asia Pacific.
The global market for trading technology currently consists of more than 65,000 firms and more than half a million trading positions, worth an estimated US$70.5 billion in 2008.
Despite a reduction in the number of users, greater reliance on technology and increasing sophistication of solutions will lead to an increase in global expenditure of 4.3% over the same period though growth in the US (the world’s largest market) is forecast to be lower at around 2.5%.
The global value of the trading information sector (including price data, news, etc.) is forecast to grow by almost 9%, to reach an estimated US$16.3 billion, albeit lower in value than the US$47 billion value of the Trading Applications sector (forecast to grow by around 3% by 2011).
Kimsey Consulting’s 185+page report and analysis provides detailed current and forecast market size and values for trading technology, across more than 50 countries, in addition to regional data for; North America, Central/South America, Europe, Middle East, Africa and Asia Pacific.
“This analysis highlights the significant global variations that exist in relation to size, structure, value and the rate of change for the market for trading technology”, comments the report’s author Stephen Kimsey. “In an increasingly competitive and global market, technology providers need to understand not just their existing markets, but increasingly where future opportunity will exist”.
The report and analysis, is available from Kimsey Consulting, email info@KimseyConsulting.com.
