OMS Spending Keeps On Churning

Traders Magazine, August 2008

Michael Scotti

Spending for order management systems on the buyside is expected to grow by about 12 percent a year over the next four years, according to a recent report by TowerGroup, a Needham, Mass.-based financial services consultant.

Interestingly, that projected growth in OMS spending is actually down from the most recent six years, when compounded annual growth reached 15 percent between 2002 and 2008. Still, TowerGroup projects that OMS spending increases over the next four years will be far greater than other areas of buyside tech spending, which are expected to grow by between 7 and 8 percent in the same period.

This year, TowerGroup estimates that $450 million will find its way into the pockets of OMS vendors. In 2010, it expects spending to be $545 million, and in 2012, if its projections prove correct, spending should equal $699 million. The OMS providers that will gain the most market share over the next four years are those that can deliver functionality for derivatives, emerging markets and wealth management, the report says.

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