Key emerging trends across sell-side firms and their implications on the global capital markets industry

In 2010, global capital markets continued to recover with the global financial stock of equity and debt reaching a new all time high. Driven by these industry trends, the total number of IPOs issued and total IPO deal volume continued their upswing in 2010. However, the regional picture highlights some strong divergences, as the growth was primarily driven by emerging markets with net equity issuances in these markets more than double in comparison with the issuances in developed markets. Also, the number of trading venues is on the rise in emerging markets and financial centers like Singapore, Hong Kong, and Shanghai are gaining prominence within the global capital markets industry.

Post-crisis, the role of regulation has increased with a number of legislative acts passed to regulate global financial markets. For sell-side firms, there are many regulations which are currently at the proposal or consultation phase that are likely to have an impact on the profitability of the industry in the short and potentially medium term.