Direct Access Expands Its Reach

May 16, 2002

Abstract

Boston, MA, USA May 16, 2002

Celent Communications forecasts strong growth in volumes for direct access providers, based upon increasing usage among institutions and continued market fragmentation.

In a new report, entitled , Celent examines the direct access marketplace, providing a brief history and analysis of current events in the industry and key benefits and features of the technology. The report also highlights different segments interested in the technology and the effect this interest will have overall.

The report predicts that direct access platforms will execute almost 500 billion shares annually by 2005, representing more than 35% of the total US equity marketplace.

According to

Fritz McCormick, analyst at Celent and author of the report, "Direct access allows a trader to bring together market data into one book and execute upon that data, amalgamating liquidity and providing for best execution. The value of such a system for both retail and institutional traders is apparent; it enables greater efficiency and reduced trading costs. This functionality, combined with increasing market fragmentation, will help the technology continue to grow in usage."

A Table of Contents is available online.

of Celent Communications' Institutional and Retail Securities & Investments research services can download the report electronically by clicking on the icon to the left.

        

Send mail to info@celent.com with questions or comments about this Web site.

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

 

Boston, MA, USA May 16, 2002

Return to report Abstract

 

EXECUTIVE SUMMARY 3
INTRODUCTION 5
MARKET OVERVIEW 7
  History 7
  Volumes 11
FEATURES/BENEFITS OF DIRECT ACCESS 13
  Smart Order Routing/Best Execution 14
  International 15
MARKET CONSOLIDATION 17
FIX AND DIRECT ACCESS 19
CHALLENGES 21
  Different Market, Different Needs 21
  Integration 21
  Listed Market Share 23
MAJOR PLAYERS 25
  Competitors 26
FUTURE TRENDS 28

 

        

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