Global Financial Services industry review Q4-2007; RSM EquiCo Capital Markets

Sector Round Up – Financial Technology

According to Kimsey Consulting, global expenditure on trading and related technology and services was an estimated $45.8 billion in 2007. Globally, the largest single country market is the United States, accounting for an estimated 35 percent of total global spending on trading and related technology and services. The second largest market is the UK, accounting for approximately 14 percent of spending, says Kimsey. In regional terms, Europe is the largest market, with an estimated $19 billion being spent in 2007. In comparison, Asia/Pacific spent around $7.5 billion.

Expenditure on applications and associated hardware and services is calculated at an estimated $28.8 billion, almost three times the amount spent on market data information. Expenditure on telecommunications into the dealing roomwas an estimated $6 billion.

The report forecasts that although growing economic uncertainty is likely to see mature markets remaining comparatively static, the ongoing development and expansion of financial, commodities and energy trading activity in emerging markets will support continued growth in financial technology investment through 2008. Read complete report.