Nasdaq moves one more options exchange to the AWS cloud

Rick Steves

Nasdaq GEMX, with its high daily messaging volume—12 billion messages and 71% more than the MRX Options Exchange, which moved to AWS in December 2022—stands as a testament to the scalability and flexibility of cloud-enabled market infrastructures.

Nasdaq has marked a significant milestone in the financial technology sector by successfully transferring Nasdaq GEMX, one of its six options exchanges, to Amazon Web Services (AWS).

This transition, using AWS Outposts, is not just a mere shift in infrastructure; it signifies a substantial leap in trading efficiency, boasting up to a 10% improvement in latency.

This migration facilitates a more dynamic capacity adjustment in response to fluctuating market conditions, thereby enhancing the trading experience for market participants.

Nasdaq GEMX, with its high daily messaging volume—12 billion messages and 71% more than the MRX Options Exchange, which moved to AWS in December 2022—stands as a testament to the scalability and flexibility of cloud-enabled market infrastructures.

Nasdaq GEMX is the third AWS cloud migration

Nasdaq’s forward-thinking strategy in adopting cloud technology for its markets is evident in this, the third such migration following Nasdaq MRX in 2022 and the Nasdaq Bond Exchange earlier in 2023. The migration of markets to the cloud is a complex process involving numerous interconnected systems and protocols integral to the capital markets ecosystem. Nasdaq has adeptly navigated this intricate web, ensuring uninterrupted and smooth operations across a spectrum of real-time market conditions.

This migration underscores Nasdaq’s commitment to spearheading market modernization through cloud-based infrastructure, fostering a more resilient, scalable, and accessible financial ecosystem. In collaboration with AWS, Nasdaq has innovated an edge computing system with AWS Outposts. This fully managed solution empowers market operators and participants with the flexibility to swiftly adapt their operational systems and strategies. This agility is crucial for keeping pace with the fast-evolving industry dynamics.

Nasdaq’s investment extends to its primary data center located in Carteret, New Jersey, within Equinix’s NY11 International Business Exchange. This facility, pivotal to Nasdaq’s US markets and cloud infrastructure, is undergoing expansion to accommodate the increasing demand from participants desiring proximity to Nasdaq’s trading systems. The enhanced facility is designed to optimize the environment for next-generation compute workloads, offering clients a broader spectrum of services and capabilities.

Tal Cohen, Co-President of Nasdaq, emphasized the client-centric approach in adopting and migrating to advanced technologies. “At Nasdaq, we take a client-centric approach to the adoption and migration of advanced technologies to minimize risk and ensure clients can capitalize on the long-term benefits our modernization efforts deliver,” he stated.

Scott Mullins, Managing Director of Worldwide Financial Services at AWS, remarked on the collaborative effort with Nasdaq. “Together, our teams are continuing to help Nasdaq redefine the future of capital markets through close collaboration and use AWS capabilities to deliver measurable benefits for our mutual clients,” Mullins said.

106 clients have already migrated Nasdaq solutions to the cloud

As of November 2023, 106 financial institutions, including financial market infrastructures, banks, and broker-dealers, have either deployed or migrated their Nasdaq solutions to the cloud.

These solutions encompass various aspects such as surveillance, risk management, marketplace services, and clearing solutions. Nasdaq’s client-centric approach ensures a tailored experience that seamlessly connects clients to critical cloud infrastructure.

By leveraging cloud technology, Nasdaq enables its clients to scale their solutions reliably and flexibly, enhancing resilience and business agility in the face of changing market demands.

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