Capital Markets Newsletter
January 2019
Introducing Celent’s Capital Markets Newsletter
Celent’s capital markets coverage spans the globe, providing a realistic and informed view of the key developments that affect strategic technology choices. Our research team is focused on technology topics across the sell side, buy side, and market infrastructure and associated vendor and service provider landscape.
For 2019, our team will continue to deliver the technology-focused research and thought leadership you have come to expect along the key themes outlined below, as we seek to help you understand the changing landscape, prioritize a wide array of strategic choices, and select the partners to help you on your journey.
Digital — Front to Back Transformation of the Sell Side
Investment banks and brokerages are future-proofing their technology and operations to coincide with a digitalage. Digital transformation is moving beyond the front office to include the middle and back office. In 2019, we will continue to monitor this transformation, with a focus on IT and operations (reconciliation, corporate actions), where we see a rebirth of the middle and back office through next-generation technology (AI/ML, DLT) and cloud. Managed services and utilities will also evolve and play a role in this transformation of the sell side.
Data and Analytics — The Sell Side Trading Desk of the Future
For 2019, in the front office, we will continue to monitor the automation of the sell side trading desk, including infrastructure (embracing the cloud), advancements in electronic trading, and methods to improve application deployment. Understanding, leveraging, and monetizing data assets will be a key part of future strategies.
Legacy Transformation — Revitalization of the Asset Management Core
In 2019, we project a year of investment and revitalization of portfolio systems and research management, the nerve centers of the buy sidefront, middle, and back office. We will highlight a model asset manager’s core revitalization through our model asset manager award. Moreover, we expect a powerful convergence of technology in the investment decision support (IDS) and risk functions for asset managers and asset owners. Asset managers will also embrace a path to the cloud, via new service offerings such as buy side front office “as a service” for trading and order/execution management.
Innovation and Fintech — Market Infrastructures are Reborn through Next Gen Technology
In 2019, we expect that CIOs will continue to embrace the deployment of emerging technology (AI/ML, smart automation, and DLT) to enable the transformation of their organizations. Moreover, firms will evolve their service models and value propositions, targeting new clients (buy side, corporates), as well as alternative revenue streams through new data and technology offerings and ecosystem development.
Digital Assets — An Entirely New Asset Class
Digital assets are arising as a new asset class. As a result, a new pre- and post-trade digital assets environment is emerging. Investment banks and custodians are offering new propositions for trading and custody and may begin replacing legacy architectures with an entirely new and parallel technology architecture. Market infrastructures are considering their own propositions, and new investment structures are emerging for the buy side to have greater participation in crypto assets. In addition, beyond private blockchains, there is potential for public blockchains to drive new models for alpha generation.
To learn more about our capital markets overview and key themes, you can find our 2019 outlook here. Please see a sampling of recent insights below. We look forward to connecting with you throughout 2019!
Sincerely,
David Easthope
Head of Capital Markets
