Around 58 PC brokers will invest in 'algos' as part of software expenses in 2020: Survey
New Delhi, December 6 () Almost 58 percent of stockbrokers will invest in 'algorithmic trade or something' as part of their spending on technological software in 2020, indicating that the accuracy and speed in the execution of operations will continue to be the focus area for them, a survey conducted by ANMI said on Friday.
The StockTech survey, conducted by the Association of National Exchange Members of India (ANMI) that surveyed around 450 business members across the country, found that in addition to the front-office and back-office software, other technology software that most brokers, about 58 percent - would invest in algorithmic trade or something.
This shows that precision and speed in the execution of operations will continue to be the focus areas for brokers, even as brokerage services migrate to the Automation and Sliding Models of Delivery Instructions (DIS), said the poll.
Securities vendors use a DIS to instruct their depository participant to debit their demat account.
The survey also found that almost 86 percent of brokers consider technology as an important factor for their business by 2020 and 79 percent of them are currently active investors in technology.
However, the survey revealed that although a large number of brokers faced some technology-related setbacks in the past two years, most of them still did not have a fixed annual budget for technology expenses.
More than 72 percent of respondents said their spending on technology was when and when necessary. This indicates the lack of preparation among agents of the brokerage industry to face the challenges of a constantly changing technological landscape in the industry and their need to keep up with technological developments worldwide.
ANMI is an association of more than 900 stock brokers of various stock exchanges, including BSE and NSE.
Commenting on the survey, Ashishkumar Chauhan, MD and CEO of BSE, said: Stocktech is organized taking into account the growing need for stockbrokers to keep up with the latest technology available in the market to increase their business. The Indian capital market and the stock brokerage space is in a transformative situation with a lot of emphasis on secure, sensitive, profitable and dynamic stock brokerage. The rapid expansion of networks and technologies has led to the emergence of cybercrime, so it has become important for companies to counter potential cyber threats and invest in technological infrastructure to improve cybersecurity and performance, he added. SP BAL