This TowerGroup Research Note addresses the new cost basis reporting requirements imposed on brokerage and investment management firms by the Emergency Economic Stabilization Act of 2009. The Note reports the findings of the TowerGroup 2009 Cost Basis Reporting Survey, conducted in the third quarter of 2009. The report focuses on how financial service institutions will deliver cost basis reporting and how much individual institutions expect to spend on their technology platform. The survey findings are also discussed in TowerGroup ViewPoint Issue 306, The Hidden Cost of Cost Basis Reporting: (1099s X Confused Clients) + Phone Calls = $$$, published in December 2009.

As the new year begins, it is necessary to assess regulators' emboldened mindset and its effect on capital markets firms in 2010 and beyond. This TowerGroup Research Note describes the landscape that capital markets players will face due to increased regulatory action regarding risk management and derivatives. The report also highlights the technology implications of the altered regulatory landscape so that forward-thinking capital markets firms can make the right strategic choices about where and how to react. To prosper, institutions and their technology departments will need to adapt swiftly.

Frenetic activity is occurring in the electronic trading business, with changes in business models, regulations, market structure, and other factors determining its future. This TowerGroup Research Note outlines five major drivers of global electronic trading: the impact of new regulation, market structure changes, the economics of the brokerage business, the changing dynamic in the buy-side/sell-side relationship, and the evolving role of the buy-side trading desk. The report discusses major changes in these drivers and their interdependencies in the global electronic trading business.

Now that the securities and investments industry is emerging from the biggest financial crisis in recent memory and assets under management are beginning to climb back up for both traditional money managers and alternative asset managers, it is time to look at the future of asset management and the forces that will drive this business in the next few years. This TowerGroup ViewPoint discusses three major challenges facing the global active asset management business and offers brief recommendations for the industry going forward.

The new cost basis reporting requirements imposed on brokerage and investment management firms are the subject of this TowerGroup ViewPoint, which is the first in a series of reports based on the findings of TowerGroup's 2009 Cost Basis Reporting Survey, conducted in Q3 2009. The analysis covers front office, client-facing issues related to cost basis that TowerGroup believes many firms are ignoring. The ViewPoint briefly reviews the cost basis legislation, highlights some potential challenges, and discusses the financial impact the reporting rules might have on the front office as well as recommends some steps that firms can take to prepare for compliance with the new legislation.

Although financial firms are unlikely to disclose the amount of money they lose due to errors in corporate actions processing (numerous studies have estimated that firms set aside 10% of their budget to insure against losses), it remains one of the most inefficient, complex, and manual functions of the back office. However, a new initiative focusing on standardizing direct issuer communication of corporate events appears poised to revolutionize the industry. This TowerGroup ViewPoint focuses on the inefficiencies and challenges of corporate actions processing and explores how this joint initiative may be the first real step to achieving some relief to the torture.

This TowerGroup Research Note will discuss the leading business drivers of 2010 for brokerage and wealth management, the strategies FSI will use to respond, and the key technology initiatives for the new year.

The global asset management business has had a wild ride in 2008 and 2009 with mutual fund assets and hedge fund assets declining precipitously. Although asset levels have rebounded smartly from their lows of March 2009 and the profit forecasts for 2010 look encouraging, investment firms will not forget the experience of the last two years. If 2009 was analogous to the dark ages for investment management firms, then 2010 will be the renaissance. This TowerGroup Research Note discusses the 10 most important business drivers and the strategic responses, and technology priorities spurred by them that asset managers will focus on in 2010.

This TowerGroup ViewPoint addresses changes effective January 1, 2010 in the marketplace for individual retirement accounts that will put in play trillions of dollars in assets not previously eligible for conversion to Roth IRAs. This ViewPoint summarizes the changes in the rules and explains why it will be worthwhile for financial service institutions and their advisors to focus on this opportunity without regard to the amount of assets it brings in the short term. The ViewPoint also explains how firms can position their advisors as retirement experts by using a variety of technologies.

The securities industry was in dire straits at the end of 2008; the industry is in a much more stable position at the end of 2009, but against an admittedly low benchmark. Dangers remain in 2010, ranging from regulation to client behavior to some fundamental questions, including: What is the best business model for a sell-side firm? This TowerGroup Research Note discusses the 10 most important business drivers for the securities and capital markets industry for 2010. It also examines the strategic responses and technology priorities on which TowerGroup expects industry players to focus.