IPC Survey on Technology Investing Priorities 4Q 2016

www.ipc.com

www.ipc.com 1

Introduction

FIA Futures and Options Expo 2016, held in Chicago on October 18-20, included 30 sessions and featured 130 speakers. The event focused on providing insight and ideas on issues important to the futures, options and cleared swaps community.

IPC conducted a survey of 239 attendees and found for the second year in a row that participants plan to increase their spend on technology.

• Our goals included gathering information on: business drivers for projected technology spend, challenges for 2017, and usage/intended usage of hosted and cloud-based services.

130Speakers

30Sessions

239Respondents

IPC Survey on Technology Investing Priorities

What is your job function?

Is your firm a:

15.63%

12.05%

18.30%

9.38%

15.18%

29.46%

Buy side Sell side/ Inter-dealer broker

Exchange/ Liquidity Venue

Market data/ trade lifecycleservice provider

Independent software vendor

Other (please specify)

2www.ipc.com

7.23%

10.64%

3.83%

1.70%

6.38%

1.28%

5.11%

7.66%

4.26%

2.98%

5.96%

12.34%

2.55%

28.09%

CEO

Trader

Trade Analyst

Accounting

Consultant

COO

Broker

Compliance/RiskManagement

Legal

CIO/CTO/ITExecutive

IT Manager

IT Professional

Auditor

Other (please specify)

IPC Survey on Technology Investing Priorities

What role do you have in the technology investments at your firm?

3www.ipc.com

32.59%Influence

20.98%Approve

16.96%Visibility

29.46%None

If you approve, influence or have visibility into technology investments, do you expect your firm’s investment in technology to increase, decrease or stay the same in 2017?

Increase 66.34%

Stay the same 32.20%

Decrease 1.46%

“Financial services IT spending will reach almost $480 billion worldwide in 2016 with a five-year compound annual growth rate (CAGR) of 4.2%.” (IDC Financial Insights Worldwide IT Spending Guides)

IPC Survey on Technology Investing Priorities

What do you think will be the primarydriver for your firm’s technologyinvestments into 2017?

4www.ipc.com

Financial firms search for ways to reduce operational cost and improve efficiency as they look for sources of alpha and work to comply with new regulations.

36.79%Improve efficiency and cost effectiveness

23.11%Gain competitive advantage

16.04%Compliance

13.68%Replace legacy technology

10.38%AccessingNew Market

5www.ipc.com

Do you intend to deploy hostedsolutions to support your technologyinfrastructure?

IPC Survey on Technology Investing Priorities

Do you have or are you currentlyimplementing cloud-based services?

These firms are beginning to seek new ways to minimize infrastructure management and find cost effective, compliant solutions using cloud and managed services.

YES54.25%

YES59.11%

45.75%

NO40.89%

NO

41.07%

Managed Services

33.33%

Electronic Connectivity

19.05%

Replacing Legacy Systems

25.60%

Compliance Oversight

15.48%

Analytics/BI

5.36%

BCP/DR

8.33%

Voice Recording

17.26%

Mobile Device

Management

36.90%

Network Infrastructure

Does your firm plan on adopting the following technology/initiatives in order to comply with regulations?

IPC Survey on Technology Investing Priorities

Please rank the top three challenges your firm will face in 2017 in order of significance. (1= most significant)

6www.ipc.com

In the coming year, firms believe they will face challenges, namely, entering new geographies, compliance, uncovering new sources of liquidity, and trading new asset classes. Firms will need to turn to opportunistic and alternative sources of liquidity and tap into new geographies and asset classes. Having access to a diverse financial ecosystem which enables access to liquidity venues, trade lifecycle services, market data, and other counterparties will be critical in tackling these issues.

Uncovering new sourcesof liquidity

Entering newgeographies

Trading new asset classes or financial

instrumentsData analytics and

reporting

Compliance

Technology infrastructure to drive business

Risk Management

3.52

4.794.64

4.88

4.33

5.78

5.22

AmericasIPC Corporate HeadquartersHarborside Financial Center/Plaza 103 Second Street15th FloorJersey City NJ 07311

T +1.201.253.2000

EMEA

Tower House67-73 Worship StreetLondon EC2A 2DZ England

T +44.(0)20.7979.7200

3301, 33/F The Center99 Queen’s Road Central Hong Kong

T +852.2899.8088

Around the world

This E-book, which we believe may be of interest to our customers and other financial industry participants, has been prepared and published for informational purposes only. It is not a full analysis of the matters presented and is not offered, nor should be construed or relied upon, as legal advice. You should not act or rely upon legal information or interpretation contained in this E-book without specifically seeking professional legal advice.

© Copyright 2016 IPC Systems, Inc. All rights reserved. The IPC, IQ/MAX, Unigy, Blue Wave and Connexus names and logos are trademarks of IPC Systems, Inc. All other trademarks are property of their respective owner. Specifications and programs are subject to change without notice.

www.ipc.com

EMEA London FrankfurtGenevaMadrid Milan MoscowParis Zürich

North America Jersey City, NJAlpharetta, GA Boston, MA Chicago, IL Bensalem, PA Fairfield, CT Houston, TX Los Angeles, CANew York, NYSan Francisco, CA Toronto, Canada Westbrook, CT Murray Hill, NJ

Hong KongBeijing Jakarta Kuala Lumpur Mumbai Seoul Shanghai Singapore Sydney Taipei Tokyo