Guest Contributor: Martin Hakker, EVP of Marketing, Fidessa and Managing Director, Fidessa Canada Corporation
Technology investment is on the rise this year as firms look to capitalize on the new look trading environment. Despite many companies postponing infrastructure projects during the downturn, sophisticated tools with adequate flexibility are required to manage the raft of new regulation, risks, and opportunities afforded by new and emerging markets.
The following gives an indication of what technology solutions under consideration should be capable of:
* Firms need to work closely with vendors to ensure they get precision technology that is sufficiently flexible.
* It is clear that Dodd-Frank in the US, and other regional regulation, means the buy-side will expect compliance monitoring solutions and execution management systems to jostle for the top spot on the shopping list, while the sell-side requires features that improve execution, analytics and risk control.
* The economic crisis and the new rules and regulations that have been passed as a result have ushered in a new era of greater transparency and heightened focus on risk management. In today’s environment, siloed information is out, enterprise-wide visibility is in.
However, this year will not be characterized simply by new risk and new regulations. As investors grow in confidence, so too does the buy and sell-side community. Technology will be the key enabler here: the breadth of trading practices and regulations means only the right system can eliminate any associated uncertainty and doubt, and allow firms to capitalize on the significant opportunities in these growth markets.
So the recipe for success in 2011? Firms need to work closely with their vendors and partners to fully understand the new market structure, as well as how and why the landscape is changing.