Top 10 Trends in Capital Markets for 2010

A new report from Aite Group provides insight into 2010’s top 10 key industry trends for asset managers, retail brokerage firms, exchanges, regulators and technologists in the capital markets. Aite Group sees the year ahead as one in which on-hold advances can finally move forward, while regulatory changes begin to reshape the financial services industry. The report is based largely on Aite Group’s assessment of the past year’s industry achievements and failures, as well as feedback from vendors and financial institutions.

The top 10 trends are:

  1. The regulators are coming.
  2. Market fragmentation continues.
  3. Asset manager consolidation.
  4. Risk management goes real time.
  5. Clearing the corner.
  6. Commoditising high frequency.
  7. Back to basics for technology.
  8. It’s about the data.
  9. Going global back on the plate.
  10. Business process management (BPM) and business process outsourcing (BPO) pick up.

As revenue-generating projects dried up in 2009, chief investment officers (CIOs) were granted a period of introspection and an opportunity to clean up messes resulting from rapid change. Now, with revenue-generating projects back on the plate, firms may be more prepared to integrate new and existing business with some awareness of the real-time impact of those opportunities. The structural changes occurring in capital markets are creating opportunities for new market entrants. An immense pool of talented people with deep domain knowledge, and looking for their next chance at success, are innovating technology, trading strategies and market opportunities.

“Regulatory changes will come in 2010, though the extent to which they will alter financial services remains to be seen,” said Adam Honoré, research director with Aite Group and author of the report. “We can be sure that transparency will continue to be the mantra of the post-credit crisis world. As banks pay back TARP money and begin to show profits, there is hope that ‘the industry will never be the same’ does not equate to ‘the industry has lost its ability to service the American dream’.”


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