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PlatformLabSeminar - StanfordUniversity
TheFutureofMarketsTomFay,SVPEnterpriseArchitectureDomPaniscotti,VPEnterpriseArchitecture
November28,2018
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NasdaqStrategicVision
MigrateexistingNasdaqsystemsandNasdaqMarketTechnologyclientstothecloud.
Developandmonetizenewbusinessopportunitiesunlockedthebycloud.
M a r k e t S o l u t i o n P a r t n e r
Collaboratewithrelevantpartnersandleveragetheirexpertize andexperiencetoelevateofferingsandreducerisk
Te c h n o l o g y P r o v i d e r
Nasdaqisaworldleaderandtrustedtechnologyvendorforbothpointandplatformsolutions
M ar k e t Op e r a t o r
LeverageNasdaq’sexpertizeandexperiencewithoperations,surveillanceandinfrastructure
EnableTheWorld’sMarketsthroughthefrictionless discoveryandexchangeofanyassetbyanyproducerorconsumertherebycreatingvalueforallparticipants.
Buildanecosystemthatallowsparticipantsto:• DiscoverMarkets• AccessOrderEntry&MarketData• Runtheircomputeco-residentw/Market(s)• DeployExchangeServicesOn-Demand• PerformdataanalyticsandengageAI/ML• Interactbilaterallywithotherclients• Accesspost-tradefacilities
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NasdaqFinancialFrameworkEco-systemConcept
RealTimeRisk
IndexCalc
MarketSurveill-ance
Multi-AssetClearingEngine
CollateralMgmt
Pre-TradeRiskMgmt
MatchingEngine
Visualizer
ExternalPriceCalc
ExternalSettlementInstructor
THE
CORETHE
COREBusiness
ApplicationAnalyzer
NASDAQFINANCIALFRAMEWORK
OpenArchitecture PromotesCommonality ModularandExtensible CloudEnabled
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COMPLIANT
InCountryLocationsand
AdherencetoDataGovernanceRules
SCALABLE
DedicatedandPartitionedComputing
Environments
SECURE
WorldClassSecurityControls
andToolsResiliencyDesignsExceedTraditional
Datacenters
RESILIENT MODERN
Well-StructuredAPIs,Architected
aroundMicroservices
CloudforMarketsAFoundationforInnovation
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MiddleEastandAfricaMICROSOFTAZURE• CapeTown• Johannesburg
ASIAPACIFIC
AWS
MICROSOFTAZURE
GoogleCloud• Mumbai• Singapore
• Beijing• Mumbai• Seoul• Singapore
• Beijing• Chennai• HongKong• Mumbai• Tokyo
• Pune• Osaka• Shanghai• Singapore• NewS.Wales
• Victoria• Osaka• Seoul• Busan• Canberra
• Sydney• Tokyo• Osaka• China
• Beijing• Ningxia
• Tokyo• Taiwan
GlobalPresenceMap
CloudprovidersareestablishingpresenceinmanyNasdaqandNasdaqclientlocations.
EUROPEAWS• Frankfurt• Ireland
MICROSOFTAZURE
GOOGLE CLOUD• Belgium• Netherlands• London
AMERICASAWS
MICROSOFTAZURE
GOOGLE CLOUD
• California• Illinois• Iowa• QuebecCity• Washington
• Wyoming• SãoPaulo• Texas• Toronto• Virginia
• N.California• Oregon• Ohio
• N.Virginia• SãoPaulo• Canada
• Iowa• Oregon
• S.Carolina• N.Virgina• Montreal
• Netherlands• Ireland
• Cardiff• Frankfurt• Magdeburg• Ireland• Netherlands• Paris
• London• Paris
• Marseille• London• Germany• Zurich• Geneva
• Frankfurt• Finland
• Abu Dhabi• Dubai
• Sydney
Amazon/AmazonAWS Microsoft/MicrosoftAzure Google/GoogleCloudPlatformLEGEND:
Newoverthelast1-2years
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RealizingaFabricofMarketsRegionalBuildingBlocks
BusinessCapabilities
On-Prem Services
CloudServices
DataLake
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DLT- TokenizedMarketSolution
v Targetspotmarketsof fungible assetswithimmediatesettlement andconfigurable marketmodels
v Initialfocus onun-regulated marketsandassets
v Support theentiretransaction valuechain
v Issuance, settlementandcustody performed onDLT
v Support theDLTuniverse (1toN, public/private DLTs)
v UseDLTforgolden source ofreferencedata
v Smartsecurities toautomatecorporateactions
Marketplace(s)(Exchange,OTC)
DLTPostTradeUniverse
Investors InvestorsCash(FIAT)
Asset
Crypto(Currency)
Issuers
Anytypeofassetcanbetradedandsettledi.e.anyassetcanbetokenized
Issuance,SettlementandCustody
Pricediscovery,Execution,
Trades
Private
Public
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CRYPTOGRAPHY
Quantumcomputersarefamousforcodebreaking,buttheirrealpowermaylieinmakingcloud
computingmoresecure.
MODELING&OPTIMZATION
AQuantumcomputermimicsthecomputingstyleofnature,allowing
ittosimulate,understandandimproveuponnaturalthings.
MACHINELEARNING&PREDICTION
Researchindicatesthatquantumcomputingcouldsignificantlyacceleratemachinelearninganddataanalysistasks.
SEARCHINGBIGDATA
Amachinethatcansearchtheever-growingamountofdatabeingcreated,andlocate
connectionswithinit,couldhavetremendousimpactacrossmany
industries.
QuantumComputingandFinTech
“Natureisn'tclassical,dammit,andifyouwanttomakeasimulationofnature,you'dbettermakeitquantummechanical,andbygollyit'sawonderfulproblem,becauseitdoesn'tlooksoeasy.”- RichardFeynman.
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WhyShouldWeCare?
Cryptography
•HardenedEncryptionTechniques•EnhanceDataPrivacy•AccelerateEncryptionAlgorithms•Blockchainatscale
Mod
eling&Optimiza
tion
• SimulateMarketEvents• OptimizeMarketBehavior• PortfolioOptimization• DynamicPortfolioManagement• RiskAnalysis
MachineLearning&Prediction • FindAlpha
• Predicttheaffectofchanges tomarketstructure
• DynamicIndicativePricing
• BetterFraudDetection Se
archingBigDa
ta
• CreditScoring• AML• PatternRecognition• “Real-time”historicalsearch•Matchingordersisasearchproblem.
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Location,Location,Location…“Where”Matters
Performance
• OrderEntry• MarketData• Determinism
Regulatory
• Fairness• Transparency• Compliance
DataGovernance
• Sovereignty• Privacy• Integrity
Highlysynchronizedclocksareformativeinaddressingtheseconcerns.