How does one continue to invest while keeping one's eyes focused on bringing about greater efficiencies? Peter Tierney, Chief Operating Officer, Asia Pacific, of NYSE Technologies, shares some insights and plans his organisation has on facing the challenges confronting the stock exchange in today's highly competitive business environments.
CIO Asia: In your view, what technology trends are shaping stock exchanges around the world now?
Peter Tierney: Trading algorithms have become a mainstay in today's marketplace. They generate more order flow - and often smaller orders - which leads to increased message traffic and higher volume. This has massively expanded infrastructure capacity requirements for not only exchanges but also the market participants that interact with these markets.
Automated trading has also compressed the cycle of quote to trade, which has put latency pressure on every step between the issuing of a quote to the receipt of an order. Trading firms are utilising every extra microsecond that they can wring out of new, state-of-the-art servers, network equipment, communications links and applications software. The way that these technologies interact and function within the trading environment have a significant impact on a firm's efficiency and overall operations.
Another major trend is technical agility. Like any other business that is heavily reliant on technology and innovation, exchanges are increasingly looking to create and modify products that cater to the evolving needs of our diverse global customers. Historically, exchanges had a small number of products that rarely changed - today NYSE Technologies, as a unit of NYSE Euronext, offers hundreds of products and services that we are constantly refining and improving. We have a goal of delivering a truly unique product portfolio that allows customers to install our world-class infrastructure for a substantially lower total cost of ownership than they could using their own internal resources. That frees them up to focus on their core business rather than complicated technology deployments and maintenance.
Open source is also changing the financial technology landscape. Through the adoption of Linux for scalable, cost effective exchange grade applications and open source protocol solutions like FIX for order routing and OpenMama for market data, the financial industry is entering a phase of more open, interoperable and cost effective infrastructure.
Last year we also launched the financial services industry's first cloud platform that we call 'The Capital Markets Community Platform'. As the exchanges assemble a community in state-of-the-art data centres, the opportunity to provide cloud services such as compute and storage on demand becomes very compelling. We believe that through our unique business model and new data centres we can offer an unmatched level of service.
What are NYSE Technologies' top priorities for the next six to12 months?
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