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IT Spending in U.S. Securities & Investments in 2006: The March Towards Automation and Regulatory Compliance

IT Spending in U.S. Securities & Investments in 2006: The March Towards Automation and Regulatory Compliance

Aite Group expects the U.S. Securities & Investments industry to spend US$27.3 billion in 2006, representing a 3.4% growth from the previous year.

By Sang Lee, Sang Lee

Boston, MA, April 26, 2006 – According to a new report from Aite Group, LLC, the U.S. securities industry, driven by regulatory and competitive pressures, appears ready to plan for long-term strategic IT projects. These projects will be designed to streamline enterprise-wide operations in the hope of minimizing operational risk and identifying new revenue opportunities. By the end of 2010, the total IT spending in U.S. securities will reach an estimated US$31.2 billion, exhibiting a CAGR of 3.3% over the next four years.

The report provides various IT spending projections based on internal vs. external, business group functions, and asset classes broken down by front-, middle-, and back-office operations.

According to Sang Lee, Managing Partner of Aite Group and the author of the report, "After a few years of tight IT budgets, the U.S. securities industry has become lean and mean and poised for sustained growth." Lee also adds, "Regulatory pressure will continue to be one of the single most important drivers for IT planning in 2006 and beyond."

This is a 36-page Impact Report. Clients of Aite Group's Institutional Securities and Wealth Management services can download the report.