IBM targets share traders

IBM, the world's largest computer-services provider, is selling a new software package specialised for financial firms, aiming to expand in an industry where its sales are highest.

Combining different applications, such as programs that develop trading algorithms and process securities, can make financial firms more efficient, Steve Mills, IBM's software chief, said yesterday.

"It's really speed, speed, speed," Mills said of the financial-services industry. "Your opportunity for unique money-making leverage may only last a matter of hours, even minutes perhaps, before others jump on the same set of trades."

IBM already has introduced software packages for industries such as healthcare, using its more than US$13 billion ($18.4 billion) in software investments to create a framework that can be adapted for an industry. IBM's financial-services sales have risen as firms trade more securities and market uncertainties climb, Mills said. The industry generates more sales for IBM than any other.

"People want more insight, more knowledge, more concerns about risk, capturing more data, managing more data," he said.

"They really believe the only way they can get their arms around what's happening is by more technology investment."

Companies can package IBM's trading algorithm software, its securities processing program or software that integrates a variety of market data, IBM said. Securities exchanges can choose from IBM's trading platform, trade monitoring or settlement-risk programs.

- BLOOMBERG