Nasdaq rethinks Amazon FinQloud venture - FT
24 March 2014 | 5597 views | 0
US exchange operator Nasdaq is rethinking its FinqCloud venture with e-commerce giant Amazon after the business failed to gain sufficient traction with potential customers, according to the Financial Times.
Launched in September 2012, FinQloud was pitched as an efficient, cheap and regulatory compliant option for financial services firms that are having to store and manage ever-growing amounts of data.
The system taps Amazon Web Services' (AWS's) cloud infrastructure and Nasdaq OMX's experience in providing technology and advisory services to exchanges, regulators and broker-dealers.
However, according to the FT, Nasdaq is re-considering its options, including a sale, shutting it down entirely or - most likely - a renegotiation of the agreement with Amazon. The latter course could see Nasdaq extend its current arrangement or invest further in the unit, says the paper, citing "one person close to the company".
The rethink follows the departure of Nasdaq transaction services lead Eric Noll, who was also responsible for FinQloud, for capital markets brokerage and tech house ConvergEx Group in November.
The Exchange also reported a $1 million dip in the sale of access and brokerage services in the third quarter of 2013.
The scaling back of the venture would be a big blow to Amazon, which has been actively pushing its Web Services business to financial institutions. Other marquee clients in the sector include Bankinter, NAB, and S&P Capital IQ.