Cloud adoption needs to happen across the entire capital markets ecosystem, Monica Summerville, Head of Capital Markets at Celent, said.
“The pandemic has been a catalyst for cloud adoption, but the reality is that most exchanges are at an early stage of cloud adoption,” she said in a conversation with Clive Posselt from The Realization Group at the Front Office: The Final Cloud Frontier? webinar.
“One big reason why cloud adoption lagged in the capital markets front office is the complexity of legacy technology infrastructures. So while this complexity does exist within financial firms in general, it’s especially prevalent in the front office due to needs around connectivity to trading venues and counterparties,” she said.
She added that latency is of course a huge concern: “Most trading firms do have expectations around both network and machine infrastructure latency. And most electronic traders are using algos for trading and if they do that, then they need to keep jitter to a minimum. Finally, for certain markets, the ability to co-locate equipment near the venues is going to be critical,” she said.