US capex market spending on advanced trading tech to reach $1.3 bln by 2010

In 2006, over half of institutional equities trades in the US were executed through direct market access (DMA), algorithms, programs or crossing networks and with steady growth in every electronic execution channel that share will increase to 64% by 2008. TABB Group forecasts that total US capital market spending on advanced trading technology is expected to total $860 mln in 2007, reaching $1.3 bln by 2010. Factor in the effects of Regulation NMS, penny option pricing and MiFID, in just the equity and options asset classes alone across the global exchanges, the volume of market data messages will soar from under 4 bln messages per day in 2006 to nearly 130 bln per day by 2010, an increase of nearly 140% CAGR.