Despite the global exchange market undergoing massive
change, total IT spending is only at a trickle, according to
financial research firm
TowerGroup.
It said with increased trading, demutualisation, widening
regulatory requirements and shifting market structures, high growth
in IT spending would be expected. But that is not the case and
TowerGroup estimates exchanges globally spent a relatively modest
£1.43bn on IT in 2006.
TowerGroup expects that this spending will only grow by 3%
through to 2009. It says spending will be 4% this year, but will
then reduce to between 2% and 3% from 2008 to 2009.
Spending in the US is showing the smallest growth, with Europe
growing moderately and Asia growing the fastest, said
TowerGroup.
As CIOs begin aligning IT strategy with corporate goals,
pressures on IT costs are building, said TowerGroup. Of all the
public exchanges, those in the US are currently under the greatest
pressure to reduce costs as they go electronic, in order to get
their IT expense/revenue ratio in line with that of other financial
firms and European counterparts.
TowerGroup's IT spending estimates
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