Nasdaq Decodes: Tech Trends 2021

Nasdaq published its 5th annual Tech Trends report today.

The exchange group highlighted:

“COVID-19 accelerated societal and technological changes at a pace we never imagined.  

At the onset of the pandemic, market volatility surged and volumes soared. Nasdaq topped several records across its markets, including the U.S. equities market experiencing its highest volume day since 2009, reaching about 5 billion messages, which was about two times its previous all-time high. The Options market recorded ten of its most active days ever, peaking at about 62 billion messages on a single day.

The events of 2020 demonstrate the importance of maintaining resiliency, capacity, performance, immediacy and security across our businesses. It is against this backdrop of unprecedented change and opportunity that we identify the four technology trends that we believe will have the biggest impact on our industry and outlook for the year ahead.

The report dives into the technologies we see impacting the evolution of the capital markets in the year ahead.

In particular, this year we dig into areas such as:

1.      Custom chips. Innovations in this area allow us to build more efficient trading systems, deliver better performance, reduce complexity, lower the cost of end products, increase profitability and add new features that differentiate our products.

2.      Edge cloud. This is a dynamic and distributed cloud model where compute and storage resources move close to where content is created and consumed, such as on mobile devices. In our industry, it can support workflows designed to evolve customer engagement models and provide deeper insights from data, as well as enable hybrid cloud strategies.

3.      Technologies that enable regulatory compliant data sharing. The cloud is a neutral infrastructure for sharing data. Federated learning allows organizations to share insights without actually sharing data. Homomorphic encryption is emerging as a technology that can allow organization to share data, retain complete control over who can access or perform analysis on it, and have auditability of that process.

4.      SaaS in the cloud and security. SaaS in the cloud contributes to our resiliency and security because it alleviates some of the potential risk of data center downtime. Deploying infrastructure as code allows us to manage and define the desired state of our technology infrastructure using configuration files, and determine the security configuration before it is deployed in a public cloud.”