Buy Side Technology in Asia: Growth of Trading Technologies and Electronic Trading in the Asian Securities Markets

January 26, 2009
Product Trends/ Reviews
Asia-Pacific

Abstract

Tokyo, Japan 27 January 2009

Buy Side Technology in Asia: Growth of Trading Technologies and Electronic Trading in the Asian Securities Markets

The investment management industry in Asia has seen impressive growth over the last decade, with assets in 2007 reaching $8.7 trillion, an increase of $3.4 trillion since 2003 at a CAGR of 13.1%. However, most firms remain small and price-sensitive to vendor solutions.

The global financial crisis has both created and destroyed opportunities for buy side technology vendors. It has benefited products that manage volatility, improve risk management, and lower operating costs. However, it has also depressed the asset management and hedge fund industries and created uncertainties about the pace of adoption of electronic trading in emerging markets. Several factors improve the prospect for greater technology spend in the future, including: future growth in the investment management industry, increasing compliance requirements, greater adoption of electronic trading, and more advanced trades and trading strategies. The financial crisis has also created opportunities for some technology vendors.

Celent’s new report, Buy Side Technology in Asia: Growth of Trading Technologies and Electronic Trading in the Asian Securities Markets, focuses on front-office technologies used by buy side firms in Asia to communicate and perform trades, fulfill compliance standards, and manage portfolios. The report examines both local and foreign asset managers and hedge funds operating in the Asia Pacific Region, in both developed countries (Australia, Japan, Hong Kong, and Singapore) and emerging economies (China and India).

Source: World Federation of Exchanges

"As the Asian investment management industry grows and new players enter the market, firms are looking for ways to remain competitive," says Lucy Cheng, Oliver Wyman analyst and co-author of the report. "Firms are turning to advanced technologies to give themselves an edge."

This report presents an overview of the leading vendors of technology solutions in each market, including international players such as Bloomberg, Calypso, Charles River, Fidessa, GL Trade, ITG, Linedata, Murex, SunGard, and TradingScreen, and regional vendors including DIR, Meta-Bit, NRI, Quick, XNET and IRESS.

The 56-page report contains three tables and 26 figures. A table of contents is available online.

Members of Celent's Capital Markets research service can download the report electronically by clicking on the icon to the left.  Non-members should contact info@celent.com for more information.  

Celent is a research and advisory firm dedicated to helping financial institutions formulate comprehensive business and technology strategies. Celent publishes reports identifying trends and best practices in financial services technology and conducts consulting engagements for financial institutions looking to use technology to enhance existing business processes or launch new business strategies. With a team of internationally based analysts, Celent is uniquely positioned to offer strategic advice and market insights on a global basis. Celent is a member of the Oliver Wyman Group, which is a wholly-owned operating unit of Marsh & McLennan Companies [NYSE: MMC].

Media Contacts

North America
Michele Pace
mpace@celent.com
Tel: +1 212 345 1366

Europe (London)
Chris Williams
cwilliams@celent.com
Tel: +44 (0)782 448 3336

Asia (Tokyo)
Yumi Nagaoka
ynagaoka@celent.com
Tel.: +81 3 3500 3023

Table of Contents

Tokyo, Japan 27 January 2009

Buy Side Technology in Asia: Growth of Trading Technologies and Electronic Trading in the Asian Securities Markets

 

Executive Summary 3
Background 5
Major Drivers of Technology Adoption 7
  Investment Management Industry in Asia 7
  Regulatory Environment 12
  Adoption of Electronic Trading 13
  Barriers to Electronic Trading 16
  Securities Market 16
Australia 22
  Australian Investment Management Industry 22
  Australian Regulatory Environment 24
  Australian Electronic Trading Adoption 25
  Australian Securities Market 25
Japan 27
  Japanese Investment Management Industry 27
  Japanese Regulatory Environment 28
  Japanese  Electronic Trading Adoption 29
  Japanese Securities Market 30
Hong Kong 32
  Hong Kong Investment Management Industry 32
  Hong Kong Regulatory Environment 34
  Hong Kong Electronic Trading Adoption 35
  Hong Kong Securities Market 36
Singapore 37
  Singapore Investment Management Industry 37
  Singapore Regulatory Environment 38
  Singapore Electronic Trading Adoption 38
  Singapore Securities Market 39
Emerging Markets 41
  Singapore Investment Management Industry 41
  Singapore Regulatory Environment 43
  Singapore Electronic Trading Adoption 45
  Singapore Securities Market 47
Technology Vendors 51
Conclusion 53

 

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