Canadian asset managers will spend heavily on electronic trading systems in 2011, according to a new report, ”Canada Survey: Partnering in Technology and Services', by research firm Aite Group.
Trading systems and portfolio systems constituted the most popular upgrades, with 29% of respondents planning major IT projects in these areas for 2011. Aite noted increased interest in execution management systems and custom algorithm program trading techniques, as Canadian asset managers experiment more with the latest technology.
The report looked at trends and expectations of Canadian asset managers in their relationships with technology vendors and service providers, including broker/dealers and outsourcing firms. Based on personal interviews with Canadian asset managers in spring and summer 2010, it identified projects underway in trading, portfolio management and account systems as well as client relationship and reporting platforms.
Further operational improvements are expected in data management, reporting and connectivity technology. Overall, 76% of respondents planned major IT upgrades of one sort or another this year.
“Canadian asset management firms have been able to capitalise on their ability to weather the financial crisis, investing in technology and infrastructure in anticipation of a global recovery and increasingly stringent regulatory environment,” said Denise Valentine, senior analyst with Aite Group and author of the report. “2011 is off to a good start in Canada as Canadian asset managers continue improvements in overall architecture and applications.”