Taming the Wild Euro A Technology Review of the future驯服野生欧元技术回顾未来.pdfVIP

Volume 1, Number 2, 1999 Taming the Wild Euro: A Technology Review of the future Alan Lloyd Paris, Business Development Manager, PricewaterhouseCoopers LLP Information Systems Frontiers, Vol. 1, No. 2, 1999 Abstract The next ten years will bring major change to the world of banking, securities trading and finance. Influenced by the key converging factors of the Internet, the euro, the Y2K Problem, same-day-settlement, and electronic trading networks, the future will find us in a world with one- third fewer banks and one-third fewer stock exchanges. The vast majority of trades in listed securities will occur on private networks. Y2K will force the failure and consolidation of as many as 20% of small to medium size financial services companies, including small brokers, money managers, hedge funds and investment advisors. Foreign exchange revenues will dry up for banks trading in Euroland, and an onslaught of competitors will arrive there from our side of the Atlantic. Over the course of the next ten years, many mid-size financial services companies will realize that they cannot afford to keep up with their investments in technology, and will merge with better capitalized, technologically savvy companies. The transition from T+5 (trade date minus five days) to T+3 (trade date minus three days) was straightforward for most companies. The transition from T+3 to T+1 and T+0 (trade date plus one day settlement, and so on), however, will be much more difficult. Companies that have fudge