Trading Technology

April 2018

Sectorwatch

The capital markets industry is experiencing a digital transformation driven by innovative technologies that are automating trade execution, increasing transparency and improving regulatory compliance. Blockchain, artificial intelligence and process automation are the key trends to watch as capital markets firms invest in IT to improve the client experience, enhance cybersecurity and increase efficiencies. In addition, there is a focus on big data and analytics to improve decision-making and extract knowledge from data to improve performance.

 

Industry Trends:

  • Current revenue growth rate exceeds the average of the last 3 years, indicating that market momentum is increasing
  • Current gross profit margin is less than the average of the last 3 years gross profit margins, indicating customer pricing power
  • Current EBITDA margin is less than the average of the last 3 years EBITDA margins, which may signal further consolidation