The Nasdaq stock exchange and Amazon Web Services (AWS) have announced a strategic partnership aimed at facilitating the transition of market operators to cloud-based infrastructure. This collaboration is designed to enhance liquidity, capital flows, and overall market growth while ensuring top-notch performance, security, and resilience.
By pooling their resources, Nasdaq and AWS will offer a comprehensive suite of solutions tailored to address the modernization challenges faced by market operators. This initiative encompasses the provision of infrastructure, software, data management, and services essential for market participants to effectively migrate to the cloud.
Central to this partnership is the consolidation of AWS services, exchange systems, and trading participant systems in a unified location. This setup will grant market participants direct access to AWS cloud infrastructure in close proximity to the core exchange complex and their own colocated trading systems. The significance of physical proximity and reduced latency cannot be overstated, especially for trading strategies like high-frequency trading.
In addition to physical proximity benefits, AWS will establish connectivity between the consolidated infrastructure and its global regions through the AWS Direct Connect service and the AWS global network. This connectivity will ensure low-latency, high-bandwidth links, enhancing operational efficiency for market operators.
Nasdaq will contribute its marketplace technology platform, Nasdaq Eqlipse, known for its cloud-ready applications and globally standardized APIs. Already adopted by over 135 market infrastructure providers, Nasdaq Eqlipse integrates client feedback and development investments, ensuring a robust and adaptable technology framework for market modernization.
The partnership’s blueprint draws on Nasdaq’s successful migration to AWS, which commenced in 2022 with the transition of its options exchange, Nasdaq MRX. Leveraging a combination of AWS cloud infrastructure and an on-premise solution, Nasdaq transformed its data center into a private AWS Local Zone, enhancing operational capabilities and attracting more capital and liquidity.
Notable collaborations under this initiative include partnerships with the Johannesburg Stock Exchange (JSE), Grupo BMV, and Nasdaq’s Nordic markets to revamp their market ecosystems. JSE, for instance, is focusing on colocation and data intelligence development in collaboration with Nasdaq, with the aim of modernizing its technology infrastructure and exploring innovative solutions like Edge computing and AI integration.
Meanwhile, Grupo BMV is leveraging the services deployment model to enhance its clearing and central securities depository platforms, while assessing the long-term viability of cloud infrastructure in Mexico. In the Nordic region, Nasdaq plans to kickstart the modernization process with the Nordic derivatives market, offering clients enhanced services powered by AWS infrastructure and Nasdaq’s GPUs in Sweden.
Market operators worldwide are increasingly embracing cloud technology to optimize their operations and enhance market efficiency. For instance, the London Stock Exchange Group (LSEG) announced its cloud migration plans in 2022, with Microsoft’s Azure as its chosen cloud provider, signifying a broader industry trend towards cloud adoption for operational enhancement and cost-efficiency.
Overall, the collaboration between Nasdaq and AWS marks a significant step towards modernizing market infrastructure and fostering global market interconnectivity. By leveraging cloud solutions, market operators can unlock new opportunities for growth, improve operational efficiency, and attract greater capital and liquidity in an increasingly digital and interconnected financial landscape.
🔗 Reddit Discussions
- U.S. Congress members warn that DJI drones ‘register facial recognition data even when the system is off, and upload information to cloud storage’
- Hi Reddit! I’m Tristan, Technology lover and I lead Cloud & Infrastructure Growth for Accenture. I’ll be running an AMA on Thu 8/20 at 10:30 ET about Cloud Migration, Management & Optimization and how it’s changing the game for companies adapting to the “never normal.” Leave your questions below!
- PSA – I managed to fix the “data could not be saved” issue with quick resume on Xbox. Delete your local saves and resync from the cloud.