About a-team Marketing Services
The knowledge platform for the financial technology industry
The knowledge platform for the financial technology industry

A-Team Insight Blogs

The Rise of Cloud Computing Within the Financial Trading Sector

Subscribe to our newsletter

Mainstream cloud adoption across the financial vertical initially started with buy- and sell-side trading firms needing an accessible platform scalable enough to store their immense volumes of market data and run risk analyses or other algorithms.

The cloud was chosen as the logical solution, satisfying the security, compliance and low latency requirements associated with such off-line quantitative analysis. In order to gain speed to market and have increased flexibility, today’s trading firms, exchanges and service providers require a more rich set of applications and services as well as high-performance computing solutions that are fast, reliable and offer low latency.

As the financial vertical evolved, cloud computing became a useful and cost-contained tool for trading firms with multiple infrastructures. It made sense for firms to utilise cloud-based IT platforms in order to trade, as long as their trading strategies did not require ultra-low latency – strategies such as Over-the-Counter (OTC) foreign exchange, options and derivatives – as opposed to buying additional infrastructure to deploy their trading strategies.

Another reason financial firms are turning to cloud computing is to keep IT expenditures to a minimum. As a result of the recent economic downturn, financial firms are dealing with tightened IT budgets. This, however, does not subside the constant pressure to bring new products to market to keep up with high-speed trading, consumer demand and ever-changing technological innovation. Each and every financial enterprise is interested in growing its profitability while simultaneously enhancing its services to clients.

The cloud has been instrumental in creating more revenue opportunities and increased trade volumes for financial firms. One example is adopters on the exchange side, who began deploying and charging a fee for the use of their own cloud platforms and market data licensing – creating two additional revenue streams to add to their already established co-location products.

Cloud is proving to be a win-win for both exchanges and financial trading firms.

FiberMedia Group has recently been working with buy-side and sell-side firms in its Secaucus, NJ and Westchester, NY data centres to deploy a cloud platform that allows firms to take advantage of market data in the cloud, access financial extranets and provide a one-stop-shop solution for firms looking to do test and development and eventually trade in the cloud. FiberMedia’s Financial FlexCloud is a solution designed for financial professionals by financial professionals – making it a perfect fit for financial trading in the capital market space and offering a number of benefits to financial trading firms.

With its infrastructure and connectivity to various service and liquidity providers already in place, Financial FlexCloud offers excellent reach as well as lowered time across capital markets. FiberMedia’s Secaucus, NJ and Westchester, NY data centres have excellent geographical proximity to a variety of financial institutions, while their Chappaqua, NY data center is conveniently located near a number of buy-side firms.

The Financial FlexCloud also converts large, up-front capital expenditures (CapEx) into more predictable operating expenditures (OpEx) – all the while leveraging the best-in-class infrastructure at nearly 25% of the cost of traditional hosting solutions

For more information about FiberMedia’s FlexCloud, visit www.fibermedia.net/services/flexcloud/

Subscribe to our newsletter

Related content

WEBINAR

Upcoming Webinar: Enhancing Buy-Side Trading Efficiency: Navigating Interoperability and AI in Real Workflows

Date: 26 June 2024 Time: 10:00am ET / 3:00pm London / 4:00pm CET Duration: 50 minutes Enhancing Buy-Side Trading Efficiency: Navigating Interoperability and AI in Real Workflows Emerging capabilities in AI and interoperability are transforming trading workflows, with the promise of heightened levels of collaboration and personalisation resulting in greater efficiency and performance. The potential...

BLOG

Bloomberg Introduces Data Access Extension for Enhanced TCA

Bloomberg has launched Data Access, a new extension to the Bloomberg Transaction Cost Analysis solution (BTCA), designed to provide clients with easier access to data through an API integration. The new extension allows users to consolidate their trading information with Bloomberg’s comprehensive reference and pricing data, enabling the creation of custom data solutions on top...

EVENT

RegTech Summit London

Now in its 8th year, the RegTech Summit in London will bring together the RegTech ecosystem to explore how the European capital markets financial industry can leverage technology to drive innovation, cut costs and support regulatory change.

GUIDE

Dealing with Reality – How to Ensure Data Quality in the Changing Entity Identifier Landscape

“The Global LEI will be a marathon, not a sprint” is a phrase heard more than once during our series of Hot Topic webinars that’s charted the emergence of a standard identifier for entity data. Doubtless, it will be heard again. But if we’re not exactly sprinting, we are moving pretty swiftly. Every time I...