The financial-markets sector is embracing technologies including cloud and serverless computing and data-streaming platforms to better manage massive information flows, said
chief technology and information officer.
In serverless computing, a cloud provider manages the servers involved. That means developers don’t need to worry about how much storage and computing power they will need as they focus on writing code. Infrastructure is adjusted automatically.
The technology “is reducing capital costs and shifting the focus to customers’ needs instead of setting up, configuring, patching and maintaining servers in the data center,” according to Nasdaq’s 2020 Tech Trends report released Thursday. “The cloud provider takes care of the scale and security, making the infrastructure essentially invisible,” according to the report, to which Mr. Peterson contributed.
Capital-markets participants—including buyers, sellers, exchanges and data providers—have adopted cloud services over the past several years, Mr. Peterson said, to better manage “the explosion of data” in the industry. “The place to process it the most cost-effectively and with the best tools happens to be the cloud,” he added.
“The cloud really has turned [IT] infrastructure into code,” Mr. Peterson said. “You can actually just send commands to the cloud providers…and that allows for infrastructure to be more dynamic and flexible.”
Serverless computing was cited by a number of technology executives last month who responded to CIO Journal’s annual end-of-year questionnaire on IT tech trends for the year ahead.
“A better client experience for a lower price point is on offer for those willing to understand the technology,”
head of technology at financial-services company
T. Rowe Price Group Inc.,
told CIO Journal.
Another technology highlighted in the Nasdaq report is an open-source platform called Apache Kafka that has become a popular way to share real-time market data.
Mr. Peterson said Kafka, which is managed by the Apache Software Foundation, has recently gained steam in the financial-markets sector. It was created in 2011 by LinkedIn as an internal application, but is used today to either publish data streams or subscribe to them in real time. One benefit, according to the report, is that it has made it easier for market participants to take huge volumes of trading data and stream it in real time through client portals.
“Between cloud, the [application-programming-interface] movement and Kafka,” Mr. Peterson said, “you have the foundational components to really make this concept of markets more cost-effective and more easy to incorporate.”
Other technology trends cited by Nasdaq’s report include artificial intelligence; low code-no code tools, where users can build applications by dragging and dropping components; and machine-to-machine communication, which “gives businesses the ability to ingest and compute large volumes of data in real time, so they can perform functions and scale quickly.”
Write to Jared Council at [email protected]
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