SAN FRANCISCO – February 3, 2010 – Advent Software, Inc. (NASDAQ: ADVS), a leading provider of software and services for the global investment management industry, today revealed what it predicts will be the top five trends for the trading and order management industry for 2010.
Based on Advent’s deep expertise in the industry and ongoing feedback from its 850-plus trading and order management clients, the Company anticipates that the trading environment will be shaped by increased regulation and investment oversight, greater focus on improving operational processes, and deciphering how technology can be leveraged to maximize efficiency as more firms are asked to process more transactions than ever with considerably fewer resources.
“2010 appears to be a year to recalibrate and leverage technology in order to improve operational efficiency, as well as adjust to an environment of greater investor scrutiny and enhanced regulations,” said John Bird, Director of Product Marketing at Advent. “It is likely that 2010 will be remembered as a period of time that set the groundwork for years of improved investor confidence.”
Advent anticipates that the top five trends for 2010 are as follows:
In an effort to re-establish investor confidence, Advent anticipates that 2010 will be a year marked by increasing regulation, and that traders will implement processes that provide greater transparency in order to more efficiently comply with increased regulations, as well as give clients more compliance insight into how their portfolio is being managed of their behalf.
Greater Investor Scrutiny
The rapid asset evaporation of late 2008, which continued into 2009, will make 2010 a year where investors will be increasingly scrutinizing the actions of their traders to ensure they are completing their mission accordingly. No longer satisfied with quarterly statements, Advent predicts that investors in 2010 will demand real-time reporting technology solutions. Looking ahead, Advent also expects investors’ concern to broaden beyond portfolio performance and include how portfolios are managed against models.
Technology Continues to Change Playing Field
Technology will continue to shape how the trading desk conducts business in 2010, as the industry continues to maintain caution entering the decade. In 2010, Advent expects the order management system (OMS) vs. execution management system (EMS) battle to continue, but does not expect finality as trading organizations continue to secure budget to make any possible changes and analyze which system works best for their scenario.
In 2010, Advent predicts the consolidation of the dark pool industry, as pending regulations should breed new or updated offerings allowing these critical liquidity destinations to provide the liquidity the buy-side demands in a manner that aids them in achieving their investment goals.
Technology has also contributed to the globalization of financial markets. In fact, Advent believes the international exchanges have caught up with the U.S. as more traders feel comfortable utilizing European exchanges, and they expect that will continue in 2010.
Trying to Make Sense of Best Settlement
Despite the significant downturn in the market, the volume of trading still remains at unprecedented levels. Subsequently, in 2010, Advent anticipates that trading and order management organizations will work diligently to establish efficient best practices with regard to post-trade settlement.
Striving Toward Operational Excellence
Advent anticipates trading desks will spend 2010 reviewing their processes and adopting best practices as they continue to react to these reduced budgets and resources. While spending will be far from rampant, look for the more savvy firms to potentially reinvent their processes and workflows to provide that greater margin and create even more transparency that both regulators and investors are demanding.
Concluded Bird, “We’ve witnessed significant changes in the industry over the last couple of years, all of which will continue to affect how we do business in 2010. By staying ahead of these developments, Advent will continue to meet the changing needs of our own clients, while influencing the future of the trading and order management industry.”
Advent Software, Inc., a global firm, has provided trusted solutions to the world’s financial professionals since 1983. Today firms in more than 60 countries rely on Advent technology to run their mission-critical operations. Advent’s quality software, data, services and tools enable financial professionals to improve service and communication to their clients, allowing them to grow their business while controlling costs. Advent is the only financial services software company to be awarded the Service Capability and Performance certification for being a world-class support and services organization. For more information on Advent products visit our product demo page.
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