Boom in IT spending predicted

Boston-based financial services research and consultancy organisation TowerGroup estimates that global IT spending on derivatives will grow 18% annually over the next three years.

Growth will be faster than the 4-6% predicted by TowerGroup for equities and fixed income, as dealers invest in risk management, processing and pricing and analytics. TowerGroup says it expects buy-side derivatives usage to explode, bolstered by the shift to electronic trading, the search for alpha and regulatory ch