It plans to move North American markets to Amazon next year.
Com Inc. Amazon Web Services is a cloud computing platform.
The move, which will take a phased approach, will begin with the US alternative market Nasdaq MRX, which will transfer a large amount of exchange operator data to third-party cloud services. Nasdaq has not released a timeline for its move to other markets.
Nasdaq’s ambition is to be “one hundred percent cloud-capable,” said Adena Friedman, the company’s CEO, announcing the move at an AWS industry conference in Las Vegas on Tuesday. “We will pursue more markets as we work closely with customers,” said Mrs. Friedman.
Nasdaq has previously said that all of its 25-plus markets will be hosted in the cloud within the next decade.
These include six equity markets in North America, including the Nasdaq stock market, as well as six equity derivatives markets, the Nasdaq Baltic and Nasdaq Nordic markets, and fixed income and commodity markets.
The financial services industry has been slow to adopt cloud computing compared to other sectors due to concerns over strict regulatory oversight of banks and exchanges, as well as sensitive customer data breaches.
“To the extent that they do not isolate their business partners and investors, moving to the cloud makes exchanges more flexible and allows more people to connect,” said Larry Taub, head of market structure. It’s easy to connect. ” Research in Bloomberg Intelligence.
Earlier this month, CME Group Inc.
Google has struck a deal to take CME’s flagship trading system to the cloud.
Nasdaq already stores records of billions of transactions in a data warehouse operated by AWS, including daily orders and quotes sent to merchants. Over the years, the company has relocated many services to AWS, including revenue management systems for the United States and European markets. The current relationship with AWS is a major reason Nasdaq said it chose Amazon.com entity to host its market.
“We have a long-standing relationship with them,” said Brad Peterson, Nasdaq’s chief technology and information officer.
Cloud systems and apps are hosted in data centers operated by third-party providers, including technology giants such as Amazon.com, Microsoft Corp.
And Google from Alphabet Inc. The system allows users to measure computing needs faster on a demand basis than in their own data center.
Peterson credits Cloud Systems for preventing Nasdaq from suspending transactions in January, when Gamestop Share Corporation’s frenzy.
And some companies have flooded popular online brokers, increasing market volatility and forcing many operators to restrict trading access.
He added that shifting markets to the cloud has the potential to provide greater security, greater reliability and exchange potential for better scalability or faster computing resources. Peterson said Nasdaq and AWS could create new cloud-based products and services for Nasdaq customers.
Scott Mullins, head of global financial services at AWS, says the growing use of cloud systems is driven by the volatility of the Nasdaq market, as well as the need for flexibility and flexibility to handle hundreds of billions of trading events every day. “If you do this on custom hardware, you have to estimate how much power you should have,” said Mr Mullins.
The two companies have been working together since about 2012 to build Nasdaq’s cloud-based capabilities, Mullins said. “If you get a bill from Nasdaq today, it’s from AWS’s Data Lake,” Mullins said.
“We’re going to do this at a pace that works for us, AWS and our customers,” said Tal Cohen, Nasdaq’s executive vice president and head of the North American market.
Ms Friedman said the move announced on Tuesday focused on the exchange’s matching engine, a system that connects buyers and sellers and handles a large number of quotes and transactions, with many high-speed trading firms accustomed to the system’s exchange process system. Is presented by Order in a millionth of a second.
Peterson said the first step would be to expand Nasdaq’s primary data center for its U.S. stock and alternative markets for Carteret, NJ and AWS, and set up computing resources there. Merchants are allowed to connect their servers to AWS servers the way they currently connect to Nasdaq’s servers, he said.