26 September 2017
Nigel Farmer


Nigel Farmer - Software AG

19Posts 82,493Views 2Comments

Capital Markets Firms Embrace Cloud Transformation

13 October 2016  |  9922 views  |  1

Cloud adoption in capital markets is gathering momentum, led by the increasing acceptance of the cloud by regulators as well as cost cutting at financial services organizations.

Indeed, regulators themselves are some of the enthusiastic adopters. Earlier this year the UK Financial Conduct Authority (FCA) decided to host its MiFID II transaction reporting system in the cloud and then, in July, published new guidance on cloud adoption.

“We see no fundamental reason why cloud services (including public cloud services) cannot be implemented, with appropriate consideration, in a manner that complies with our rules," the FCA said.

This has been followed by a raft of other announcements with the Monetary Authority of Singapore issuing guidance in July, the US’ DTCC moving its Avox Data services to Amazon Web Services cloud, and DBS bank looking to move half its computing capacity to the cloud within 2 years.

The pros and cons of the cloud are well documented, but what is behind the sudden surge and what does it really mean for banks?

With large-scale transformation programs on the agenda, many firms find  it hard to rapidly deliver change in a leaner organization that is weighed down by regulatory burden and legacy technology. This is where the cloud can help facilitate their transformation; freeing up resources, eliminating lengthy purchasing processes for new equipment and speeding up software development and deployment.  

Yet, many financial services firms remain wary of the cloud. According to a survey on cloud usage in financial services by the Cloud Security Alliance (CSA), the most common concerns relate to security, compliance, and privacy. Acceptance, guidance, and adoption from the regulators will obviously help allay these fears. As should the added cloud benefits of flexible infrastructure capacity, reduced time for provisioning and reduction in total cost of ownership.

For the larger sell-side firms with onerous procurement processes, flexible scaling makes it significantly quicker to grow or shrink capacity as required. For the buy-side the availability of high performance computing and advanced technologies as services helps to level the playing field and enables them to adopt new technologies. Fintechs are benefitting from greatly reduced start-up costs, enabling them to go-to-market much quicker.

The cloud is a great place to be, but there are many other considerations to be addressed, such as:

  • What to migrate to the cloud; having a clear picture of existing IT infrastructure, costs and support requirements is vital to maximizing the benefits of  cloud
  • Integration with on-premises applications, across cloud (both private and public).
  • Analytics; the ability to gain insight from and react to data that resides both on premise and in the cloud. In real-time!
  • Processes; the need to manage processes that span systems regardless of where they reside.

What could greatly help firms is a single digital business platform that offers all of these capabilities, on premise, in the cloud, and a hybrid of the two, enabling firms to transform their business in an agile fashion and at the pace required to stay ahead of the curve. Get onto the cloud, but keep your feet on the ground.

TagsRisk & regulationInnovation

Comments: (1)

Srinivas Annamaraju
Srinivas Annamaraju - Hewlett Packard Enterprise - London | 14 October, 2016, 07:43

Good one. Another example of a big bank adopting a robust private cloud is Deutsche Bank, going with Hewlett Packard Enterprise.

One more aspect that will drive adoption is when enterprises/ banks start thinking of cloud native applications and in moving appropriate apps to the cloud, etc.

Be the first to give this comment the thumbs up 0 thumb ups! (Log in to thumb up)
Comment on this story (membership required)

Latest posts from Nigel

Are Smart Contracts getting smarter?

22 November 2016  |  4478 views  |  0 comments | recomends Recommends 2 TagsBlockchainInnovation

Data, Data Everywhere, nor any Knowledge to Gain

27 October 2016  |  5026 views  |  0 comments | recomends Recommends 0 TagsRisk & regulationInnovation

Capital Markets Firms Embrace Cloud Transformation

13 October 2016  |  9922 views  |  1 comments | recomends Recommends 0 TagsRisk & regulationInnovation

How to Manage Your IT Spaghetti

29 September 2016  |  3324 views  |  0 comments | recomends Recommends 0 TagsInnovation

CFTC Rules: Preventing the Rise of the Cybermen

14 September 2016  |  4096 views  |  0 comments | recomends Recommends 0 TagsSecurityRisk & regulation

Nigel's profile

job title Industry Director, Capital Markets
location London
member since 2016
Summary profile See full profile »
Nigel Farmer is the head of Capital Markets solutions at Software AG, responsible for the strategy,product management and marketing of solutions in areas such as Market Surveillance, Pre-Trade Risk, F...

Nigel's expertise

Member since 2016
19 posts2 comments
What Nigel reads
Nigel's blog archive
2016 (19)

Who's commenting on Nigel's posts

Srinivas Annamaraju