October 30, 2023

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“The only constant in life is change,” noted the Greek philosopher Heraclitus. Yet sometimes businesses need to prepare for change in ways we least expect. 


In our previous article we wrote about how national economies are suffering due to inertia of change in financial market infrastructures. These limitations, upheld by legacy tech, should be considered as ‘weight of baggage’.  

 

Yet recent history is littered with examples of groundbreaking innovations – sometimes in ways that were least expected – transpiring precisely because their creators were able to by-pass incumbent systems. Can national stock exchanges stand to benefit in a similar manner?

Lessons from payments

One well known example of a company leapfrogging traditional infrastructure systems is the Kenyan mobile money system, M-Pesa. Emergent mobile networks and fintech technology made it possible for M-Pesa to provide wider accessibility at lower costs, effectively kick-starting a banking revolution. Now, millions of unbanked people in sub-Saharan Africa are able to buy and sell goods and services using only their mobile phone, in contrast to the US payments systems which are primarily linked to bank and credit card infrastructures.  

 

Similarly, the Chinese digital wallet service WePay buypasses traditional payment providers by allowing users to make mobile payments and send money through popular social media messaging app WeChat. The WePay payment service provider permits marketplaces and other intermediaries to offer payments as part of their offering.

 

In both these examples we can see that when legacy tech is avoided, true innovation is able to take place – often in areas and ways we could not have foreseen – as opposed to the original rationale of the technology developments and deployments. 

Unlocking the future; break free from legacy constraints

Looking at the world of exchanges and markets, the same is of course true –  exchanges basing products on modern underlying infrastructure can gain advantage simply by opening themselves up to innovation and change, often in unforeseen ways. 


The modern approach to building exchanges demands unique skills absent from the legacy systems prevalent in today’s traditional markets. It not only offers cost-efficiency, but also necessitates a fresh mindset. Exberry’s enterprise-grade, cloud-agnostic, SaaS trading engine has been carefully constructed with modular design and scalability at the forefront to best serve diverse markets, asset classes and geographies.


Our methodology for building our advanced trading platform is based on the most up-to-date methodologies and practices to ensure that market infrastructure will always be ahead of the curve. This means exchanges can dramatically shorten time to market, as well as benefit from easy integration with third parties.

Reap the benefits

Although change remains a constant presence in our lives, the future remains inherently unpredictable. We can, however, be confident that the digitisation of markets is not going to go away. 

 

What is also highly likely is that change will lead to unexpected innovation, and those financial exchanges not willing to truly embrace change will find themselves held back. Alternatively, early adopters of new technologies will reap the full benefits of these unforeseen innovations. Without legacy tech weighing them down, the possibilities are endless. 

For more information

“Nobody gets fired for buying IBM”

The phrase “Nobody gets fired for buying IBM” has been a steadfast mantra in the tech industry, underscoring the inclination to choose established, reliable vendors to sidestep blame when issues arise. Twenty years ago, everyone knew that choosing reputable brands, such as IBM, was the way to go.

The Gulf Exchanges, They Are a-Changin’

A couple of weeks ago I had the chance to visit the Gulf region. In particular, I attended both the Arab Federation of Capital Markets (AFCM) Annual Conference in Qatar, as well as The Capital Market Summit in Dubai.

Next-Gen Consultancy for Financial Markets

Ambitious financial exchanges need to keep growing. Yet in the world of capital markets this is not always a straightforward task. Each jurisdiction has its own national characteristics and different way of doing things. If an exchange decides to build its own trading or clearing infrastructure, unless it is happy paying an exorbitant cost, it will typically have to wait a number of years for delivery. So, what are the alternatives for exchanges?

Let’s talk

We are looking forward to hearing from you and one of our team members will be in touch.

Let’s talk

We are looking forward to hearing from you and one of our team members will be in touch.

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