2009 Trends to Watch Financial Markets

DATAMONITOR VIEW 1
CATALYST 1
SUMMARY 1
ANALYSIS 2
Institutions will remain focused on survival rather than growth, driving risk management, reporting transparency and cost control as strategic priorities 2
Greater oversight of operations and reporting transparency should be part of the regulatory response to the crisis 2
The crisis will see further consolidation and government intervention in banking sector. 3
Executive decision making will shift to Asia, with more resilient IT spending in this region 3
Despite slowdown, relative strength will drive a shift in bank decision making power to Asia 4
Development of market reporting under Basel will drive IT investment 5
Asian markets continue to get serious about fraud and AML measures 6
Transparency demands will benefit exchanges as the OTC market shrinks, however, competition from new players will drive continued focus on price, speed and throughput 6
The competition between exchanges is driving the low-latency arms race 7
Development of a global CDS clearing house will have dramatic effects for the industry 7
OTC products continue to move onto listed exchanges 8
Despite harsh market conditions, wealth management IT spend will be relatively resilient as client retention and reporting transparency forces investment 9
The alternative investment industry will shift to a more specialized services role to survive 9
The exit of hedge funds from a range of investment classes will see a lessening of volatility 10
Hedge funds will review their prime brokerage relationships 10
The Madoff scandal has prompted the adoption of outsourcing 10
ACTIONS 12
Impacts on participants in financial markets 12
Recommendations for those selling into financial markets 12
APPENDIX 13
Methodology 13
Further reading 14
Ask the analyst 14
Datamonitor consulting 14
Disclaimer 14
List of Tables
Table 1: Exchange consolidation history 8
List of Figures
Figure 1: Financial markets IT spending in emerging Asia Pacific economies will be more resilient that in mature markets 4
Figure 2: Fraud and process automation key APAC investment areas 6