What Technology Does Buy Side Like? Surprise, Bloomberg A Winner

EZE Castle Integration released their third annual Global Technology Benchmark Study based on a survey of 538 buy-side firms across the US, UK and Asia.

Tech firms preferred by the buy side

The report provides insight into the technology choices made by these firms, which fell into various categories across the entire buy-side landscape, and different sizes of AUM, as shown in the charts below.

1 Buy Side

Goldman Sachs Group Inc (NYSE:GS), as usual, topped the list for primary prime broker with 112 votes from 304 respondents. JPMorgan Chase & Co. (NYSE:JPM), Credit Suisse Group AG (ADR) (NYSE:CS), Morgan Stanley (NYSE:MS), UBS AG (NYSE:UBS) and the rest of the field followed in that order.

In the critical area of order/execution management, the pecking order remained unchanged from 2012 as shown below:

2-oms Eze Castle Buy Side

Eze Castle’s OMS system

The Eze OMS system remains the leader in the space with Bloomberg AIM offering only a semblance of competition. The other players remain far behind in terms of market share. Another interesting result from the survey showed that the use of Eze OMS appears to be proportional to the size of AUM – the larger the AUM, the higher the percentage of its users.

In the market data and analytics space, unsurprisingly, Bloomberg stood head and shoulders above the crowd, garnering 304 users out of 328 in data, and 191 users out of 232 in analytics. Thomson Reuters Corporation (NYSE:TRI) (TSE:TRI) and Capital IQ were distant runners-up in data and analytics, respectively.

3-market-data Eze Castle Buy Side

Mobile devices preferences

In other technological preferences, Advent Software, Inc. (NASDAQ:ADVS) was the system of choice for Portfolio accounting (54%), Global Relay was used by almost 82% of respondents for message archiving and BlackBerry Ltd (NASDAQ:BBRY) (TSE:BB) continued to reign as the overwhelming choice for mobile devices (92% of respondents). In the last-named category, Apple Inc. (NASDAQ:AAPL) has been steadily increasing its share from 10% in 2011 to 42% currently.

4-mobile-tech Eze Castle Buy Side

The report concludes by advising that the investor community is placing greater demands on the buy-side firms and this will require the latter to carefully consider their choices of systems and technology partners.

Bob Guilbert on Eze Castle’s goals

“As the global leader in hedge fund IT, Eze Castle Integration is committed to educating the alternative investment market about the various technologies available to effectively and efficiently run their business,” said Bob Guilbert, managing director of Eze Castle Integration. “With the insight from our annual benchmark survey, hedge fund managers are empowered to select technologies and service providers that will best support their companies.”