Nasdaq unveiled its fourth annual Tech Trends report, exploring the emerging technologies that are driving innovation in the shaping the future of global markets and marketplaces. This year’s report highlights three key trends: machine-to-machine communication, business in real time and the platform economy.
In recent years, companies across all industries have been going digital – from upgrading marketing and communications tools to reimagining big data and optimizing operations. While each firm defines what a digital transformation means to them, Nasdaq’s Market Technology and Global Technology teams explore three trends that are turning these concepts into reality, including:
- Machine-to-Machine Communication (M2M): The creation of data through machine-to-machine communication and the Internet of Things (IoT) without human intervention, allowing businesses to scale by ingesting and computing large volumes of data in real time.
- Business in Real Time: The ability to source and process valuable data consistently and efficiently is allowing businesses to go real time, leading to an overall better customer experience. Streaming technology that broke ground in the world of social media and entertainment is now being utilized in the capital markets.
- The Platform Economy: Platforms and APIs are enabling M2M-generated data to be integrated in unique ways, establishing a foundation for innovation and the ability to deliver a differentiated and distinct customer experience.
Global markets and marketplace companies are already beginning to leverage these innovative and potentially disruptive technologies to increase efficiency, reduce costs, improve security, enhance the customer experience and generate revenue, according to the report.
“Many of them are already building the cloud, M2M, ML, AI and blockchain technologies into their strategy,” according to the report. “They are actively participating in industry working groups to figure out how they can make the best use of technologies such as Kafka, [robotic process automation] RPA, serverless compute and [low code no code] LCNC, and ensure their implementations comply with regulations.”
In the M2M ecosystem, machine learning (ML), artificial intelligence (AI), edge computing and 5G networks are reducing the reliance on batch processing and eliminating lags, the report states. AI chips are the latest generation of microprocessors, and “could play a critical role in economic growth because they will be featured in autonomous vehicles, smart homes and cities, robotics and other technologies,” according to the report.
Apache Kafka, which was originally developed by LinkedIn and is now available as open source via Confluent, presents a wide range of possibilities to move businesses into real time. While the technology itself is not new, markets and marketplaces have gained a better understanding of how it can be applied and adopted. For instance, many markets and marketplaces are considering how to run workloads in multiple clouds via Kafka. At Nasdaq, there are several use cases for Kafka, such as taking vast volumes of on-premise trading data and streaming it in real time through client portals, as well as streaming analytics for risk management, surveillance and compliance workloads.
RPA is also enabling business in real time by developing an action list by watching the user perform a task in the application’s graphical user interface (GUI) and then performing the automation by repeating those tasks directly in the GUI. This technology not only helps financial firms achieve better results from the collected data, but it can also be applied to market operations functions that need to be done at scale and automated, including surveillance and compliance case management.
Serverless compute and LCNC, meanwhile, are enabling the platform economy. With serverless computing, applications are set to run on-demand on hardware provisioned by the cloud provider, meaning the cloud provider handles the scale and security of the platform. LCNC, on the other hand, allows users to build and test applications, such as mobile or web apps, by dragging and dropping application components connecting them together.
“It is fascinating to watch these technologies converge into the solution for the future,” the report concludes. “We look forward to partnering with market participants, issuers, regulators and other technology companies to create a stronger, more efficient and transparent capital market ecosystem ready for change.”
To learn more about this year’s Tech Trends report, please click here.