Financial services and markets have typically been slower than other sectors when it comes to taking up the Cloud. Fears about the security of the cloud when it comes to sensitive financial data to it, have left financial traders wondering whether the Cloud is really a safe option. But with the Cloud really settling in as a valuable business tool and security being higher than ever before, the financial markets are starting to see the benefits of the Cloud.
Benefits Of The Cloud For Traders
From banks to hedge funds, any business that is concerned with financial trading stands to benefit from the Cloud. As well as exchanges around the world starting to offer Cloud-based technologies, banks such as CitiBank and JP Morgan are turning to the Cloud for trading and sharing of financial data.
Using the Cloud offers many benefits:
- Information can be quickly and easily shared between locations
- High security means data is safe, and private Clouds can be set up to give access only to specific companies or funds
- Cloud hosting reduces the need for software installation and specific hardware, reducing in-house costs
- Remote services mean less need for specialist knowledge in-house
- Cloud services allow for flexibility, with traders able to expand and shrink in response to market conditions.
Some of the world’s largest stock exchanges are embracing the Cloud as the ideal new technology for financial trading.
NY Stock Exchange Becomes More Cost Effective
The New York Stock Exchange was quick to embrace the Cloud, rolling out services designed to make for a better and more cost effective experience for traders. The Capital Markets Community Platform offers a range of NYSE related data along with services such as low latency trading, reporting, and market and risk analysis information. For traders, this means less spending on in-house technology, freeing up resources and giving better access to the data they need.
NASDAQ Leverages Cloud For Better Data Management
NASDAQ has embraced the Cloud to offer better, faster and more secure data management, via its offering of FinQloud, a Cloud service powered by Amazon. FinQloud was designed to allow for management of financial data quickly, securely and in line with industry standards. With a strong focus on providing one-stop Cloud services, NASDAQ has provided a Cloud which allows traders to access exactly the information they need,when they need it most.
Cloud Will Continue To Grow
Industry experts believe that use of the Cloud will continue to grow in the financial markets sector. To date, uptake has been faster on the buying side of the financial markets. Companies there tend to be smaller and have more budget constraints to contend with, making the Cloud particularly useful.
But with the global financial crisis causing companies across the board to feel the pinch, there is scope for increased Cloud uptake on the selling side, too. Industry analysts believe that there will be a shift away from adopting the cloud purely due to financial constraints, as it slowly becomes the industry standard for financial trading.
The Cloud allows traders on financial markets around the world to be more nimble and responsive, and makes it easier to trade without plowing endless resources into hardware and software management.
With the Cloud itself looking to become a hot commodity on the exchanges in 2014, it’s clear that the Cloud is here for the long term and financial markets are better off for it.