Nasdaq and AWS Join Hands to Revolutionize Capital Markets

The migration of markets to AWS by Nasdaq commences in 2022. The On-Ramp for capital market migration to AWS is enabled by a co-designed edge computing solution by Nasdaq and AWS. The Primary Data Center of Nasdaq will make history with this unprecedented Private AWS Local Zone for global markets.

This collaboration between Nasdaq and AWS lays the foundation for building one of the most advanced and innovative cloud-enabled infrastructures for international capital markets.

A Phased Migration Approach

Photo Adena Friedman, President and CEO at Nasdaq
“For over a decade, Nasdaq has used the elasticity and high security of AWS to deliver client-driven solutions. Our innovative, new collaboration with AWS creates a bridge to the future for our markets and represents the next major step forward in Nasdaq’s cloud journey,” said Adena Friedman, President and CEO at Nasdaq.

The migration process can be described as a phased approach. It starts with a US options market, Nasdaq MRX. With a jointly-designed (Nasdaq and AWS) next-generation computing solution, Nasdaq plans to migrate its North American markets. The primary focus of this solution is market infrastructure. Other market infrastructure operators and participants may also utilize this solution for transferring trading systems to the cloud.

This collaboration also paves the way for exploring fresh methods to take advantage of the excellent cloud hosting capabilities of AWS. The beneficial Nasdaq areas include market infrastructure software solutions, data & analytics, and anti-financial crime.

According to Adena Friedman, President and CEO, Nasdaq, this association is going to build an exclusive scalable and robust cloud-oriented market infrastructure with easy access for all stakeholders.

Adam Selipsky, CEO of Amazon Web Services believes that this collaboration between Nasdaq and AWS will redefine the possibilities and avenues available for capital markets organizations. It will boost innovation and transform the business process, according to Selipsky.

AWS Outposts

What is central to this migration will be AWS Outposts. The core areas involved include AWS infrastructure, tools, and APIs to all data centers, on-premise facilities, and co-location spaces. The direct incorporation of AWS Outposts by Nasdaq will lead to ultra-low-latency edge compute capabilities. This computing solution is going to make Nasdaq’s data center the first private AWS Local Zone available for the capital markets industry.

Nasdaq also plans to move many more North American markets to the AWS cloud. With this hybrid infrastructure, Nasdaq will offer law latency access to its on-premise systems. It results in delivering high-frequency trading capabilities. The clients will also have fast access to cloud-oriented capabilities, such as machine learning, market analytics, and virtual connectivity solutions at affordable prices.

Public Cloud and Hybrid Models

More than 130 market infrastructure clients, including exchanges, clearing houses, banks, central securities depositories, regulators, and clearinghouses, depend on Nasdaq to perform clearing, core trading, surveillance technology, and settlement today. Nasdaq and ASW also plan to explore the possibilities of developing feasible cloud choices like hybrid models and public-cloud models.

This migration approach would provide market infrastructure clients improved dynamism and agility. It will also make them better equipped to stay flexible and responsive to the ever-evolving industry dynamics in their unique market environments.