Risk management, margin risk capital resources, analyzing portfolio, systemic, and operational risks are just a few of the high-profile topics from the Institutional side of the market.
How to analyze Risk properly, how to leverage it, and how to control risk are discussions that are ongoing for the Institutions, particularly for the Buy Side Institutions as the new regulations for their business models are just getting underway. The Sell Side Institutions new regulations have settled in and are looking to become the norm over the next few years.
With so much attention in risk management, there is a huge opportunity for companies that offer solutions to the Buy Side Institutions, which control trillions of dollars in assets across the entire spectrum of financial markets.
The competition for dominance is just beginning to heat up with both private companies and big blue chip firms vying for the lucrative client base from the Buy Side. Now that Derivatives are all moving to clearinghouse regulations and reporting based on the Frank Dodd Act and EMIR, the scramble for dominance is just beginning but there are companies already setting precedence that could take that firm to dominance in their market niche.
This is an area that retail traders and smaller funds can use to find stocks with strong growth potential for trading and investing. As the financial industry invests in risk management services and tools, a few companies that offer these products and services will have strong stock trends.
Whenever there is a huge demand for a new technology service or product, new opportunities for trading and investing emerge rapidly. Often times retail investors, retail traders, and smaller funds are unaware of the growth in a sector until long after the stocks have moved up. By recognizing early on that a new technology is in high demand, traders, investors and small funds are able to enter the stock sooner in its trend.
Most of the time these kinds of new technology opportunities are not mentioned in the retail side news until long after stocks and companies have reached market dominance. Recognizing the potential for a niche growth in several sectors before the stocks have moved up in long term trends is key to taking advantage of the new opportunity. Discover Portafina
At this time there is a mixture of private companies, companies posturing for IPO, young listed firms, and venerable big blue chip companies in the Risk Management Solutions Services sector. What is important to remember is that it is rarely the big blue chip firm that becomes the dominant new contender company, but the younger firms that offer the greatest stock trading and stock investing profitability.
The Financial Services Industry need for strong risk management tools, products, services, and solutions has continued to rise over the past 3 years and now as the final stages of Frank Dodd and other regulations become mandatory all firms in the Financial Services Industry must comply. This means a huge surge of revenues are heading toward this new technology area this year.