June 23, 2009 Many organizations trading capabilities are restricted their technology, according to a new global survey of 220 investment bankers conducted by Sybase and IDC Financial Insights.
Conducted during the first quarter of 2009, the new report - Emerging From a Crisis, a Sybase Study on Capital Markets - suggests that firms recognize the need for significant short-term business model changes to realize increased business value, and that IT and line-of-business executives share that strategic vision.
The results are supported in a news story that appeared in Information Management last week. Before mid-2008, many broker/dealers and investment banks were applying BI and analytics to longer-term investment planning where they might sift through six months of transactions to help determine one, three or five-year market trends, said Kevin McPartland, an analyst at TABB Group in New York.
Now, decision-makers are demanding real-time market and credit reports on their Blackberries, regardless of whether the data is structured or unstructured in order to make decisions on investment positions or trades the same day. This includes the use of BI tools to help key stakeholders quantify the impact an SEC filing or a news report might have on markets or on the positions of individual instruments, said McPartland about BGC Partners use of eSpeed as part of its business intelligence strategy.
In the Sybase/IDC study, 72 percent of surveyed organizations are restricted by their trading capabilities. Of those surveyed, 67 percent of respondents believe front-to-back office workflows suffer as a result of departments having control over their own data management platforms rather than a centralized process. Additionally, 67 percent of respondents felt that workflow should be more centrally managed.
The study revealed a dedicated investment of time and resources for major IT projects. Despite the current state of the economy, IT investment spending is likely to remain steady, with some areas of moderate growth, according to the study. Of the respondents polled, 100 percent agreed that addressing the data management issues would require dedicated time, resources and technology, the company release stated.
Among many other findings, 85 percent of respondents expressed a need to integrate pretrade risk analytics as part of the trading applications themselves, the release stated.
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