IT investment by the Japanese securities industry
will continue to grow. Outlays for IT by Japanese securities firms will
reach US$3.1 billion and US$4.8 billion in fiscal years 2008 and 2012.
In the past several years there has been talk of the
disintegration of central securities markets. Proprietary trading systems
(PTSs) and off-exchange trades are increasingly attracting attention due
to deregulation. Trading volume is increasing at PTSs and alternative
trading systems (ATSs) that are already in operation, indicating that
fragmentation of Japan's equity market has already begun.
In a new report, IT Spending Trends in the
Japanese Securities Industry, Celent explores recent and upcoming
growth within this sector. IT investment by Japan's securities industry
has increased significantly compared with 2005 levels, aided by the
recovery of the market. Given that major overseas financial industry
participants, including the exchanges, are enhancing their access tools to
the capital markets, Japanese securities firms need to accelerate their
globalization efforts. Furthermore, securities firms keep upgrading the
accuracy and functionality of client interface systems, both in the retail
and wholesale sectors, investing heavily in both new technology and
enhancements of existing systems.
Celent expects that IT investment by Japanese
securities firms will reach US$3.1 billion and US$4.8 billion, in fiscal
years 2008 and 2012, respectively. From 2002 to 2006, IT investment by
securities firms grew at an annual rate of 10.11%. Despite the sub-prime
effect, this rate should continue to increase after 2007 to 11.7%
annually.
"A shift in the market structure of Japan's
securities sector will have a great impact on firms. As the industry goes
through significant changes, participants will continue to make aggressive
IT investments," says Yumiko Manchu,
Celent analyst and author of the report.
This report reviews the current business environment
for Japan's securities industry and discusses future trends and
expectations. The report goes on to analyze the areas in which securities
firms are making IT investments.
The30-page report contains 23 figures. A table
of contents is available online.
