A study by Acuiti, in collaboration with Connamara Technologies, highlights the challenges emerging and frontier market derivatives exchanges face due to outdated technology. The report, “Building Competitive Technology for the Exchanges of the Future,” is based on surveys and interviews with 58 senior executives globally. It reveals that 87% of exchanges in emerging markets view technology investment as crucial for growth, particularly to attract international members. However, less than half have upgraded their matching engines in the past six years, leaving them behind tier 2 and 3 exchanges.
Outsourcing technology, particularly for surveillance systems, is common among these exchanges, with firms reporting better cost predictability and timelines when working with specialist vendors. Key concerns include exchange outages and the need for customisable software, with 67% of respondents planning significant technology investments in the next year.
Jim Downs, Co-Founder & CEO of Connamara Technologies, comments: “Acuiti’s rigorous study validates the clear demand for exchange platforms that offer the cost-effective benefits of a pre-packaged solution while also providing the tailored features and flexibility of a custombuilt platform.”
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