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As we anticipate the beginning of a new year, it’s insightful to examine the cloud adoption patterns from Financial Market Infrastructure (FMI) providers during the latter half of 2024. In recent months, FMIs—including exchanges, clearing houses (CCPs), and security depositories (CSDs)—have significantly accelerated their migration of essential workloads to AWS while also rolling out innovative Generative AI (GenAI) applications.
FMI organizations and capital market firms are recognizing the cloud and GenAI as crucial competitive advantages. With this understanding, they have expedited major technological decisions, swiftly moving towards realizing their strategic objectives. Utilizing AWS, these institutions are able to handle vast data volumes and conduct near-real-time analytics, enhancing their operational capabilities in areas such as research, billing, surveillance, and risk management—all while achieving cost efficiency. Furthermore, FMIs are modernizing trading platforms, optimizing post-trade settlement and clearing processes, and developing cutting-edge services with AI, ML, and GenAI technologies on AWS. This blog outlines some key customer developments across trading, post-trade, data distribution, and GenAI, as well as the AWS services being utilized for transformation.
At AWS re:Invent 2024, a variety of new services were introduced, particularly focusing on GenAI. Key highlights included the launch of AWS Tranium3, the next-generation AI chip, and Amazon Nova, a new suite of foundational models capable of processing text, images, and videos. These advancements provide FMIs with high-performance solutions to develop and expand their AI applications. AWS also formed a strategic partnership with Oracle, known as OracleDatabase@AWS, which allows customers to utilize Oracle’s Autonomous Database on dedicated infrastructure and Oracle Exadata Database Service within AWS. Additionally, AWS expanded its microsecond-accurate PTP hardware clock support, enhancing observability for trading platforms and simplifying the architecture for globally distributed databases and storage systems.
Trading Platforms
In the second half of 2024, exchanges, liquidity providers, brokers, and other market participants have increasingly adopted AWS for their operations. For instance, TP ICAP announced a strategic partnership with AWS, planning to migrate 80% of its workloads to the cloud, with a focus on modernizing its electronic trading platform, Fusion. Boerse Stuttgart also joined forces with AWS to migrate its digital asset trading infrastructure, aiming to enhance scalability for European financial institutions. Scalable Capital introduced the European Investor Exchange (EIX), a new equity stock exchange powered by AWS, which integrates seamlessly with its retail investment platform. Moreover, Abaxx exchange successfully launched its Singapore-based commodities market, fully hosted on AWS.
Post-Trade Applications
FMIs are progressively transitioning their core post-trade and related systems to the cloud. LSEG discussed its implementation of blue-green deployments for Amazon Aurora PostgreSQL global databases to enhance innovation and minimize deployment times. KOR Reporting received a Securities Based Swap Data Repository (SBSDR) license from the SEC, becoming the second cloud-based SBSDR after DTCC, both utilizing AWS. EDX Markets partnered with Adaptive to create a cloud-native clearing and settlement platform, developed on AWS within a remarkable five-month timeline. DTCC has also filed with the SEC to host critical clearance, settlement, and risk applications, including Regulation Systems Compliance and Integrity (“Reg. SCI”) systems on AWS.
Data, AI, ML & GenAI
The integration of Data, AI, ML, and especially GenAI continues to be a focal point for the industry and FMIs. LSEG transitioned its historical PCAP dataset to AWS, achieving an 80% reduction in hosting costs while providing clients with enhanced data access options. Bloomberg developed virtual data rooms on AWS that facilitate secure data trials without the risk of exfiltration. These environments allow customers to interact directly with Bloomberg’s data catalog in a pre-provisioned, fully AWS-native setting, expediting the evaluation process.
Crypto.com implemented a multi-agent consensus-seeking solution utilizing various LLMs hosted on Amazon Bedrock, delivering sentiment analysis and news categorization for cryptocurrencies in under a second. They customize feeds based on users’ trading levels and wallet contents. During the AWS New York Financial Services Symposium, DTCC shared insights on using GenAI and Amazon Q Developer for efficient code generation.
Nasdaq and AWS published success stories demonstrating how Nasdaq is innovating its financial solutions through AWS generative AI, enhancing market surveillance, and providing AI-powered sustainability insights via its ESG solution, SustainableLens. This assists institutions like HTLF Bank in rapid entity investigations using Nasdaq Verafin—all supported by Amazon Bedrock.
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