Technology trends

Outlook 2022: Key Technology Trends Impacting Market Infrastructure Operators Globally

JThroughout 2021, we have seen the second year of COVID-19 be a dominant force in financial markets, the global economy, and all of our lives. Exchanges continued to focus on resilience in their mission to ensure their markets have the appropriate capacity to operate during times of record volumes and intense volatility – and overall, the global market infrastructure s is well maintained. At Nasdaq, during the pandemic, we processed new record volumes of up to 120 billion messages over a 12-hour period in the data lake for our own markets.

One of the highlights for Nasdaq in 2021 was the announcement of the multi-year partnership we have established with AWS to re-engineer the next generation of capital market infrastructure. It’s the next step in the journey to the cloud we started over a decade ago, starting with the foundational data storage, reporting, and billing workloads. Since then, we’ve steadily moved closer to the Match Engine, and now we’re moving workloads with ultra-low latency requirements to the cloud. Starting in 2022, Nasdaq plans to migrate our North American markets to AWS in a phased approach, starting with Nasdaq MRX, a US options market. The Nasdaq will take advantage AWS Outposts – that extend AWS infrastructure, services, APIs and tools to virtually any data center, colocation space or on-premises facility – within a new edge computing solution, co-engineered by the Nasdaq and AWS and specifically developed for market infrastructure.

The cloud at the forefront for many CIOs

Through the partnership with AWS, Nasdaq seeks to power a truly cloud-based market infrastructure that is more resilient, scalable, and accessible to all market participants. We expect cloud migration to enable the adoption of new services and products in a way that unlocks value and provides our customers with increased flexibility and scalability.

The Nasdaq is certainly not alone in embracing cloud computing as the future of market infrastructure operations. A survey conducted by Nasdaq and Celent in 2021 showed that CIOs and CTOs want to take an innovative approach to improving their organization’s agility and time to value. Increasing adoption of cloud technology and micro-services is seen as a key factor in adding agility and meeting customer demand. According to the survey, the number of cloud-ready applications in the global market infrastructure will increase by nearly 30% over the next four years.

As the engine of technological evolution in financial markets, we are focused on collaboration and innovation to fuel and transform the next 50 years of our industry. We will leverage the cloud journey of our own markets and the collective technology portfolios of our partnership with AWS to create a migration plan to support our market technology community and customers on their journeys, using a combination of cloud options public and computing at the edge.

Consumerization of service interactions

While we have seen and continue to see substantial investment in modernizing the marketplace infrastructure, it’s not just about the backend architecture. Now, market infrastructure operators are planning the next phase, which is to implement digital interfaces for trading firms and other customers to make interactions more efficient. We are seeing the consumerization of service interactions, driven by changing customer expectations and the ability to operate much more efficiently. This means that we will see the introduction of more APIs and workflow tools.

In response to this development, we launched our digital services portal called Nasdaq Client Connect in 2021. The portal allows exchange and clearinghouse members to log in, or log in via a REST API, to access to their data and configurations, and interact effectively with service teams. . Giving customers secure access to self-services and a real-time view of data and settings means that manual labor spent on routine tasks can be significantly reduced, as well as service response times, to name a few. -some of the advantages.

An exciting year ahead

As a technology provider and partner in 130 markets around the world, we constantly invest in services that deliver value to our customers and empower them to choose their path to modernization and transformation. We have seen an increase in demand and usage for SaaS services, and we will continue to offer our customers critical market infrastructure as a service. We plan to leverage our R&D investments and partnership with AWS to transform the global marketplace ecosystem and infrastructure. Above all, we look forward to delivering more value and lowering barriers through innovative and transformative market infrastructure over the next decade.