NASDAQ (NDAQ) and AWS (AMZN) Partner to Transform Capital Markets


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Today at AWS re:Invent, Nasdaq (Nasdaq: NDAQ) and Amazon Web Services, Inc. (AWS), an Amazon.com Inc. (Nasdaq: AMZN) company, announced a multi-year partnership to build the next generation of cloud-based infrastructure for global financial markets.

Starting in 2022, Nasdaq plans to migrate its North American markets to AWS in a phased approach, starting with Nasdaq MRX, a US options market. Nasdaq will use a new edge computing solution co-designed by Nasdaq and AWS and specifically developed for the market infrastructure. This solution can also be used by other market infrastructure operators and market participants to move their trading systems to the cloud. Additionally, the partnership will include opportunities to explore new ways to leverage AWS cloud capabilities across Nasdaq’s Financial Crimes, Data & Analytics, and Market Infrastructure software solutions.

“This landmark partnership with AWS aims to power a truly cloud-based market infrastructure that is more resilient, scalable, and accessible to all market participants,” said Adena Friedman, President and CEO, Nasdaq. “For more than a decade, Nasdaq has used the elasticity and high security of AWS to deliver customer-centric solutions. Our innovative new collaboration with AWS bridges the future for our markets and represents the next major step in Nasdaq’s cloud journey.

“Together, Nasdaq and AWS will change what’s possible for capital markets organizations, helping them accelerate innovation and improve business processes,” said Adam Selipsky, CEO of Amazon Web Services, Inc. financial markets with the proven security, reliability and resilience of the global cloud leader will help our joint customers and the Nasdaq continue to grow their businesses and transact seamlessly for billions of dollars a day. Our partnership will give Nasdaq a way to more easily move its core infrastructure to the cloud and innovate new services as it continues its second decade of cloud adoption.

Building the financial market infrastructure of the future

The move from Core to Nasdaq to AWS will be AWS Outposts, which extend AWS infrastructure, services, APIs, and tools to virtually any data center, colocation space, or on-premises facility. Nasdaq plans to integrate AWS Outposts directly into its core network to provide ultra-low latency edge computing capabilities from its main data center in Carteret, New Jersey. This co-engineered edge computing solution would effectively establish the Nasdaq data center as the first-ever private AWS local area for the capital markets industry.

Over time, Nasdaq plans to move other North American markets to the cloud with AWS. This hybrid infrastructure would provide Nasdaq with low-latency access to its on-premises systems to provide high-frequency trading capabilities, as well as give its customers access to cloud-based capabilities, including virtual connectivity services, market analytics and machine learning, at a lower cost. Nasdaq expects this cloud migration to enable the adoption of new services and products in a way that unlocks value and provides its customers with increased flexibility.

Advancing cloud-based market technology solutions for the global economy

For the more than 130 market infrastructure customers – spanning exchanges, banks, clearing houses, central securities depositories and regulators – who rely on Nasdaq for their trading, clearing, Core Regulation and Oversight Today, Nasdaq plans to partner with AWS to develop a viable cloud of choices that include public and hybrid cloud models.

Nasdaq also intends to leverage its cloud journey for its own markets, coupled with the growing number of AWS Local Zones around the world and the partnership’s collective technology portfolios, to create a migration plan for its technology customers from market using a combination of utility cloud and edge computing options.

Nasdaq expects cloud migration to give its market infrastructure customers increased agility and help them quickly adapt to changing industry dynamics in their countries and regions.

The Nasdaq Cloud Strategy: A Decade-long Journey to an Interconnected Future

For 50 years, the Nasdaq has been reinventing markets to realize the potential of tomorrow. After pioneering electronic markets half a century ago, Nasdaq developed the most successful messaging protocols in the early 2000s, which now serve as the de facto industry standard for ultra latency trading. -weak. Additionally, Nasdaq was one of the first exchange operators to commercialize its technology and began using AWS technology in 2008. Today, Nasdaq’s technology solutions deliver performance, transparency, efficiency, and integrity throughout the transaction lifecycle at market infrastructure operators—exchanges, central counterparty clearing houses, central securities depositories, and regulators—in more than 50 countries.

As Nasdaq seeks to redefine the market technology of the future and tackle the transformation of its core infrastructure for decades to come, it is committed to creating an interconnected future – a safer and stronger future for all, in the cloud.