There will be a sharp reduction in the number of trading technology jobs globally by 2011, according to a new report.
The study, by Kimsey Consulting, predicts that there will be 12,000 fewer positions worldwide by 2011, and 20,000 fewer positions in the US and western Europe alone.
The firm says continuing fallout from the US sub-prime mortgage market and the collapse of the credit markets are key factors driving change in the global market for trading technology, particularly in North America and western Europe.
It adds that the extent of the forecast reduction would be significantly larger if not for continued expansion of financial, commodities and energy trading sectors in regions such as eastern Europe, the Middle East and Asia Pacific.
The global market for trading technology currently consists of more than 65,000 firms and more than half a million trading positions, worth an estimated $70.5 billion in 2008.
Despite a reduction in the number of users, Kimsey believes greater reliance on technology and increasing sophistication of solutions will lead to an increase in global expenditure of 4.3% over the same period though growth in the US (the world’s largest market) is forecast to be lower at around 2.5%.
The global value of the trading information sector, including price data and news, is forecast to grow by almost 9%, to reach an estimated $16.3 billion, though lower in value than the $47 billion value of the trading applications sector (forecast to grow by around 3% by 2011).
“This analysis highlights the significant global variations that exist in relation to size, structure, value and the rate of change for the market for trading technology,” said Stephen Kimsey, the report’s author, in a statement. “In an increasingly competitive and global market, technology providers need to understand not just their existing markets, but increasingly where future opportunity will exist”.