Exchanges and trading venues are under pressure as institutional electronic trading activities augment the volume of orders, quotes, and executions that exchanges and trading venues manage. Retail investors’ participation is further fueling this growth. These factors are pushing exchanges and trading venues to scale their technology infrastructure to process higher trading volume and meet ever-evolving regulatory compliance requirements while offering more products to trade and ensuring exchange connectivity.

This report explores the key requirements for building and maintaining a next-generation exchange and trading venue technology stack capable of supporting the speed of executions during normal and volatile periods, providing transparency, and conducting surveillance of the executions to maintain market integrity. It is based on market trends observed around stock exchanges, a virtual discussion with members of Datos Insights’ Investment Operations Council, and 15 discussions held between January 2024 and June 2024 with industry participants, including broker-dealers, buy-side firms, custody banks, depository institutions, and solution providers.

Clients of Datos Insights’ Capital Markets service can download this report.

This report mentions Nasdaq, AWS, LSE, Microsoft, Google, and CME.