Nasdaq and Celent Publish Report on Technology in Market Infrastructure

During its biennial Technology of the Future conference in Stockholm, Nasdaq Inc., in collaboration with Celent, revealed the results of a new study on market infrastructure. Senior technology and strategy officers uncovered three important trends: the factors that are driving changes in market infrastructure, how MIs are using technology to support business strategies and how technology spending is evolving. The report was conducted through in-depth discussions with C-suite executives (including CEOs, COOs, CTOs, CIOs and Heads of Strategy) representing 20 different MI organizations across North America, Europe, the Middle East, Asia, and Latin America. The key takeaways from the study include: 1) Technology is playing an increasingly important role in supporting growth plans. Between 10% to 50% of MIs’ technology budgets are spent updating legacy technology and innovating compared to 90% to 50% for system maintenance. 2) Data and analytics are becoming major revenue drivers, and all MIs surveyed are transforming data management practices with plans to offer new data solutions and delivery options such as data-as-a-service. The next goal is to develop advanced analytical tools with AI and machine learning (ML) to create new solutions for investment decision support, risk management and compliance. 3) There is tremendous interest in adopting new technology such as cloud, artificial intelligence (AI), machine learning (ML), and distributed ledger technology (DLT) because they can help develop innovative solutions, new business models, and contribute to significant operational improvements.