2006 electronic trading predictions

Larry Tabb, founder and CEO of the TABB Group, predicts the following seven trends for 2006

1. Exchange and market infrastructure redesign because of Reg NMS, Instinet's acquisition by NASDAQ, NYSE-Archipelago merger and MiFID
2. Move toward low-touch services as both buy and sell continue algorithmic/automated execution infrastructure to lower cost
3. Increased data velocity will force lagging firms to rebuild their market instrastructure
4. Research unbundling. He cites London's PS05/9 and the Fidelity/Lehman deal as examples
   
5. Derivatives play a larger role in hedge fund, investment managers and B/D's look to redefine risk
6. Push to develop consolidated delivery and processing platforms to better serve clients
7. Consolidation will continue to drive the industry