Transform the trade lifecycle with AWS

Modernize the trade lifecycle to drive innovation

Transform the trade lifecycle with AWS

Boost efficiency of pre-trade operations

Transform the trade lifecycle with AWS

AWS is supporting capital markets customers globally to modernize the trade lifecycle. With AWS, these firms are streamlining access to and management of data, accelerating research and strategy identification, enhancing trading capabilities, modernizing risk management, surveillance, and reporting systems, as well as streamlining their post-trade processes.

Modernize the trade lifecycle to drive innovation

Transform the trade lifecycle with AWS

Boost efficiency of pre-trade operations

Streamline trading systems

Optimize post-trade processing

Get started today with AWS

Boost efficiency of
pre-trade operations

Rapidly accessing, storing, and analyzing large amounts of data from a range of sources and structures is critical for capital markets firms. As these firms look to capitalize on market opportunities first and launch new strategies and products quickly, accelerating time to insight and streamlining innovation are increasingly important differentiators.

With AWS, firms are enhancing the efficiency of their pre-trade processes. AWS enables customers to access over 1,300 unique third-party datasets and APIs on AWS Data Exchange. Capital markets firms are building modern data-management environments, accelerating back-testing and analytics, and launching new products and solutions rapidly with AWS services such as Amazon Elastic Compute Cloud (Amazon EC2), Amazon Simple Storage Service (Amazon S3), Amazon Redshift, Amazon Athena, Amazon SageMaker, and Amazon Bedrock.

BBVA collaborates with AWS to boost its equity business

BBVA is on a mission to deliver the highest quality of service while minimizing risks and boosting its equities business. That’s why it developed the BBVA C-Fit platform as another step in its digitization journey. The platform can host all the processes of the equity desks related to marking and management of market data used to set prices or manage risk. Using services like Amazon Elastic Kubernetes Service (Amazon EKS) and Amazon Managed Streaming for Apache Kafka with Bloomberg’s B-PIPE, BBVA C-Fit renders real-time direct access to market data over the cloud.

AQR Capital uses AWS to generate new investment signals

AQR Capital manages billions in assets and makes investment decisions based on numerical models and systemic trading. It needed a scalable solution that was fast without long queue times, easy to use, and secure. Its on-premises compute grid could not keep up with demand, and the company needed a scalable solution for both compute and memory. AWS built a platform as a service (PaaS) using Amazon Elastic Container Service (Amazon ECS) and Amazon EC2 while also using Amazon EC2 Spot Instances (Spot Instances) for on-demand compute. Today, AQR can easily generate investment signals faster by back-testing large amounts of data at a much lower cost.

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BBVA C-fit is another example of BBVA’s efforts to strategically transform the equity business into a client franchise, leveraging technology with a clear focus on the manufacturing of investment products.”

Nicolás Allano
Global Head of Equities, BBVA Consulting

We can back-test 20,000 equities times 20 years’ worth of data, creating an enormous amount of jobs all at once.… Using Spot Instances, we lowered our costs to $15 for 500 physical cores. That is an incredibly low price—and something we cannot match on-premises.”

Michael Raposa
Head of Platform Engineering, AQR

Modernize the trade lifecycle to drive innovation

Transform the trade lifecycle with AWS

Boost efficiency of pre-trade operations

Streamline trading systems

Optimize post-trade processing

Get started today with AWS

Streamline trading systems

Across asset classes and trading strategies, capital markets firms are deploying their trading platforms on cloud infrastructure to increase flexibility and innovation, accelerate time to market, streamline their technology stack, and optimize costs. Exchange operators are migrating markets to the cloud to accelerate innovation, enhance differentiation, and launch new markets rapidly.

With AWS, customers have flexibility in hosting options and a broad range of solutions to build and deploy their trading platforms. For firms with less latency-sensitive strategies, such as retail trading platforms and certain marketplaces, customers are deploying their trading platforms in an AWS Region. For lower latency platforms, such as institutional trading platforms and exchange operators, customers are hosting their solutions in an AWS Region, AWS Local Zone, or on-site. With shared cluster placement groups, exchanges are exploring new business models. Crypto exchanges are launching cloud-native co-location environments, and highly regulated exchanges are exploring cloud proximity services on AWS. Exchanges are also using Amazon SageMaker to build and deploy AI-based order type and trade recommendation engines.

Nasdaq migrates three US markets to AWS

To meet the rigorous performance, resilience, and regulatory demands for the capital markets, Nasdaq and AWS co-designed an ultra-low latency edge computing system, leveraging AWS Outposts, a fully managed solution that provides market operators and participants with added agility to rapidly adjust operational systems and strategies, as well as innovation capabilities. AWS and Nasdaq engineers worked together to integrate multicast switches, Network Interface Cards with Precision Time Protocol timestamping, and exchange-optimized Amazon EC2 instances.

Nasdaq runs these Outposts in their Carteret data center and has a multiyear plan in place to continue on its cloud migration journey. In 2022, Nasdaq completed the migration of its first US options market, the MRX Options Exchange, and saw a 10 percent round-trip latency improvement compared to its previous infrastructure. Nasdaq has also gone live with the Nasdaq Bond Exchange in August 2023, and the Nasdaq GEMX Options Exchange in November 2023. GEMX processes 12 billion daily messages, 71 percent higher daily message volume than the MRX Options Exchange. Nasdaq’s Exchange on AWS offering also lets other exchanges benefit from AWS innovation and Nasdaq’s market expertise.

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Modernize the trade lifecycle to drive innovation

Transform the trade lifecycle with AWS

Boost efficiency of pre-trade operations

Streamline trading systems

Optimize post-trade processing

Get started today with AWS

Optimize post-trade processing

Capital markets firms are utilizing the cloud to optimize their post-trade processes and systems. By consolidating fragmented systems into scalable cloud platforms, firms are standardizing processes, reducing duplication, enabling innovation, and lowering trade-processing costs.

With AWS, customers are using services such as Amazon S3 and Amazon Redshift to meet real-time reporting and recordkeeping obligations cost-effectively. Capital markets customers are using AWS services such as Spot Instances and Amazon SageMaker to streamline risk, margining, collateral management, regulatory capital management requirements, and trade processing. Clearinghouse customers are modernizing their mission-critical, highly regulated clearing and settlement workloads on AWS, increasing innovation while better managing market volatility.

AWS is helping to transform
post-trade processes

Clearing, settlement, and custody

Capital markets firms have traditionally relied on legacy inflexible infrastructure for their core post-trade processes, which leads to higher costs, longer upgrade cycles, interoperability challenges, and security vulnerabilities. AWS helps customers build cloud native systems for their mission-critical, highly regulated workloads in the clearing, settlement, and asset custody process. This enables them to access disparate datasets more easily, streamline processes, and innovate faster at scale.

The entire Euronext Securities Milan company is able to extract value from data, leveraging AWS technologies and Tableau. An example is the new Liquidity Dashboard service, which allows you to predict customer liquidity for a better application of post-trade services. Previously, this information was non-integrated and accessible with a certain effort. Now, with specific models for customers, we can predict what their liquidity will be day by day.”

Enrico Papalini
IT Manager, Euronext Securities

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AWS is helping to transform
post- trade processes

Risk, margin, and regulatory capital

Using a combination of AWS services (such as Spot Instances, which facilitate on-demand computations) and APIs, customers can secure required compute capacity to monitor and measure market, credit, and/or liquidity risks. Customers can also rely on these and other AWS services to build complex simulations for regulatory capital, margin, default fund, and other obligations.

AWS is helping MUFG achieve its goal of becoming a digital financial platform by leveraging cutting-edge technologies, including generative AI. Our cloud-first approach with AWS has given us the agility to rapidly innovate on behalf of our customers, reach the business velocity that we couldn’t achieve on premises, and accelerate the way we bring secure, industry-leading solutions to market at reduced cost.”

Toshiki Ochi
Managing Corporate Executive and Group Chief Information Officer, MUFG

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AWS is helping to transform
post- trade processes

Trade processing and asset servicing

AWS helps capital markets firms manage multiple asset classes for front-to-back trade management, including limits, market risk, pricing, and reconciliation. Using AWS compute, data management, AI, and ML services, firms can deliver faster processing, persistence of system data, and storing of binaries and logs. These capabilities enable them to move away from on-premises installation. They can provision new instances in minutes instead of months, gaining visibility on costs at a granular level and reallocating resources to innovation projects.

Our customers rely on us and we rely on AWS. It’s important for us to provide resilient, always-available solutions, especially as customers prepare for T+1 settlement. Today, Broadridge platforms process $10T in settlement transactions every day on the cloud.”

Mike Sleightholme
President, Broadridge International

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