When it comes to moving workloads to the cloud, those digital processes that facilitate financial transactions are prime candidates.
But although some might think of cloud stock trading as low hanging fruit, some of these types of platforms have been resistant to moving transactional processes from on-premise servers to remote vendor data centers, with all of the logistics and big changes that entails.
An ambitious project by Amazon in conjunction with Singapore Exchange Limited (SGX) and a London exchange is supposed to change all that.
Reuters reports a new pilot project by Amazon allows cloud trading systems to multicast to various stakeholders, which is an important step in making the cloud a place for equities trading.
Amazon leaders say the new systems could help with outages that companies have experienced using on-premises hardware, along with bypassing labor-intensive processes like batch processing and manual reconciliation.
“Blockchain is a frequently misunderstood technology, yet it is also one of the most promising areas of innovation today for specific use cases that involve transactions at scale,” head of technology strategy and innovation at SGX Peter Shen says as quoted in a case study showing how these services can work. “Smart contracts and distributed ledgers have great potential to fundamentally transform capital markets, making financial transactions and processes more transparent, resilient, and less costly.”
Amazon proponents claim the systems will help with efficiency, scaling and reliability for trading desk systems and help to complement prior systems that “codify rights and obligations” for trading parties.
These systems, they say, can also reduce trade settlement time by up to 60%
“Using Amazon Managed Blockchain, SGX no longer needs to rely on an intermediary to process and send information back and forth, which enables transaction transparency across a shared ledger,” claim AWS writers. “As a result, the company expects to reduce settlement time for trades by up to 60 percent. Because Amazon Managed Blockchain simplifies the creation and operation of blockchain networks, it is easier for SGX to experiment and adopt critical systems. Ultimately, the organization anticipates blockchain will go beyond enabling more efficient transaction models to creating a new digital asset class that can change the way funds are raised and distributed, unlocking liquidity and facilitating borderless transactions.”
If you’re a fan of digital trading, this type of advance could be right up your alley. Make sure you factor these types of advances into your trading strategy.