Continued low returns in cash equity trading should compel even the largest banks to undertake a fundamental review of the technology needed to support this business, including greater use of third-party providers, according to capital markets consultancy Celent.

With little sign of equities trading volumes improving in the near future, meaning continued low returns for large banks and brokers, firms should look to reduce or recycle technology assets, including using outsourced and other managed services, according to a report by Celent published this week. This path has previously been eschewed by the largest firms for fear of losing their competitive edge.