The financial industry is at a critical juncture. Exchanges worldwide are exploring future technological landscapes, grappling with frustrations and pain points in current systems. They’re considering market evolution from multiple perspectives – business, regulatory and technological. We’re witnessing a convergence of executive and technological layers, signalling a shift in the industry’s DNA and paradigm.

It’s time to move beyond technical jargon and architecture talks. We need to bridge the gap between technology and C-suite executives, focusing on practical business applications and solutions. The emphasis must be on business-oriented discussions that resonate with decision-makers and drive real-world outcomes.

Industry Landscape: Progress and Persistent Challenges

Cast your mind back six years. The mere mention of cloud technology in exchange circles was met with raised eyebrows and scepticism. Fast forward to today, and cloud solutions are not just accepted but widely implemented. It’s a testament to our industry’s capacity for change when the benefits become undeniable.

Yet, let’s not paint an overly rosy picture. The reality on the ground is far more complex. Operational challenges persist in installations, deployments, knowledge gaps and methodology disparities. Exchanges grapple with architectural considerations, pricing structures, feature development processes, change requests, and the integration of new asset types. All this while navigating an increasingly complex regulatory environment with the likes of DORA and MICA looming large.

Industry dynamics further complicate matters. There’s a clear divide between leaders and followers, with limited sharing of innovations among market leaders. We hear plenty of buzzwords, but see far less substantial technological advancement.

Persistent pain points continue to plague the industry. Incumbent players resist change, clinging to legacy systems. We still hear of exchanges waiting three to five years for new technology delivery. Customised features come with exorbitant price tags, discouraging meaningful upgrades. How are exchanges supposed to evolve and compete under these conditions?

Enabling Business Through Technology: From Theory to Practice

It’s time to shift from theoretical concepts to tangible solutions. We need to call out outdated approaches and empty promises, encouraging transparency in sharing both successes and challenges. 

Let’s consider real-world examples. The successful launch of the cloud-based Abaxx Commodity Futures Exchange demonstrates the potential of embracing new trading and clearing solutions. We’ve seen instances of on-premises deployments and hybrid approaches combining both cloud and on-prem solutions. These case studies offer practical lessons for exchanges considering similar transitions.

These technology choices have profound impacts on key business metrics. Team velocity and efficiency can skyrocket with the right tools. Total cost of ownership analysis often reveals surprising long-term benefits of modern systems. Time-to-market for new products and services can be slashed dramatically.

Implementing new technologies requires careful consideration. Best practices for cloud migration, strategies for integrating new systems with existing infrastructure, and approaches to minimise disruption during transitions are all crucial elements of a successful technology strategy.

The Time for Action is Now

Exchange leaders must view technology as a business enabler, not just a necessary evil or cost centre. The industry needs to foster collaboration and knowledge sharing, creating platforms for exchanging experiences and solutions.

The time for theoretical discussions is past – we need practical, actionable insights that can drive real change. The future of exchanges lies not in clinging to the past, but in boldly stepping into a technologically-enabled future. This path forward requires courage, collaboration, and a willingness to challenge the status quo. It’s time for exchange leaders to drive the technological transformation their organisations need to thrive in the coming decades.

AFM and Exberry Tech Day – A Workshop for Change

As such, the Association of Futures Markets (AFM) and Exberry are reimagining the annual AFM tech day, transforming it into a dynamic workshop for industry evolution. Set for 9th October at Amsterdam’s W Hotel, this event marks a departure from tradition by welcoming non-AFM members and other exchanges, broadening the dialogue and fostering inclusivity.

At the heart of this tech day is Exberry’s commitment to a no-holds-barred approach to confronting industry challenges. We’re sidestepping theoretical discussions in favour of practical solutions and real-world implementations. A highlight will be the case study on the Abbax Exchange launch, offering tangible insights into market creation and execution.

This isn’t just another conference. It’s a hub for networking and knowledge sharing, where technical expertise meets business acumen. Our aim is to bridge the persistent gap between technology teams and C-suite executives, cultivating a shared understanding that can drive meaningful change in our industry. Moreover, it’s an opportunity to spend time with leading exchanges, regulators, liquidity providers, vendors, and most importantly, colleagues and friends, all working together to support and drive the industry’s evolution.

Join us on 9th October in Amsterdam for the AFM and Exberry Tech Day. Visionary exchange leaders are invited to explore cutting-edge exchange technologies, network with industry peers, and shape the future of financial markets. Limited seats available. Register now!