Have been pondering about building stock exchanges in the cloud and whenever I tweet it is like placing an order in an exchange, the only difference being it is textual rather then monetary information.
NYSE and NASDAQ already use and provide cloud computing services for their members and I am sure there are a number of exchanges which also offer this facility.
Today I came across a design for a stock engine bid matching engine in the cloud by Mr. Ashish Banerjee http://www.ashishbanerjee.com/bid-matching-engine. in the public cloud using Amazon Web Services.
Today's blog is about designing a Stock Exchange in the Cloud for SMB (Small and Medium Business) or also called as SME ( Small and Medium Enterprises) in India.
SMB/SME are burdened with expensive debt and an exchange for listing their equity will allow them to reduce their cost of debt and also distribute the business risks to shareholders.
As large corporations get bruised the future will belong to the SMB/SME Business who are agile and nimble and hungry for growth. The SMB/SME provide employ a large number of people and also contribute significantly to the economic growth.
The SMB/SME companies need low threshold for listing and also adequate liquidity for their stocks, thus the ideal solution will be to have integrated exchange depository and clearing house. The cloud provides an ideal and secure platform for building such an exchange.
Here are the benefits of moving SMB/SME Exchanges to the cloud
1. Quick setup of the exchange, can be accomplished in weeks.
2. Reliability, Latency and everything else that the Cloud Offers.
3. Economical storage of data.
4. Low start up cost
5. Agility and Innovation
6. Low cost of ownership which relates to lower transaction cost.
The SME/SMB stock exchanges should be owned and built by the SMB/SME Industry Associations rather then the larger exchanges.
A frugal and Gandhi engineering approach is needed for these exchanges to make them viable.
A regulator is still be needed to oversee the operations, but the regulator must insist more on self regulation rather then imposing stringent controls which are normally required for the larger exchanges.
Well these could be baby steps in new era of exchange technology but if these SME/SMB exchanges in the cloud are successful it will not be long before the bigger exchanges move into the Cloud.
NYSE and NASDAQ already use and provide cloud computing services for their members and I am sure there are a number of exchanges which also offer this facility.
Today I came across a design for a stock engine bid matching engine in the cloud by Mr. Ashish Banerjee http://www.ashishbanerjee.com/bid-matching-engine. in the public cloud using Amazon Web Services.
SMB/SME Exchanges in the Cloud will signify a New Era for trading!
SMB/SME are burdened with expensive debt and an exchange for listing their equity will allow them to reduce their cost of debt and also distribute the business risks to shareholders.
As large corporations get bruised the future will belong to the SMB/SME Business who are agile and nimble and hungry for growth. The SMB/SME provide employ a large number of people and also contribute significantly to the economic growth.
The SMB/SME companies need low threshold for listing and also adequate liquidity for their stocks, thus the ideal solution will be to have integrated exchange depository and clearing house. The cloud provides an ideal and secure platform for building such an exchange.
Here are the benefits of moving SMB/SME Exchanges to the cloud
1. Quick setup of the exchange, can be accomplished in weeks.
2. Reliability, Latency and everything else that the Cloud Offers.
3. Economical storage of data.
4. Low start up cost
5. Agility and Innovation
6. Low cost of ownership which relates to lower transaction cost.
The SME/SMB stock exchanges should be owned and built by the SMB/SME Industry Associations rather then the larger exchanges.
A frugal and Gandhi engineering approach is needed for these exchanges to make them viable.
A regulator is still be needed to oversee the operations, but the regulator must insist more on self regulation rather then imposing stringent controls which are normally required for the larger exchanges.
Well these could be baby steps in new era of exchange technology but if these SME/SMB exchanges in the cloud are successful it will not be long before the bigger exchanges move into the Cloud.
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