NASDAQ OMX Group Inc.
) announced the launch of an Amazon Web Services-powered cloud
computing platform - FinQloud. The platform has been created to
assist the financial services industry in storing and managing
financial data with a view to simplifying operations and helping
companies meet regulatory requirements.
Global regulators are coming up with stringent regulatory
requirements and gaining access to more in-depth data in order to
boost transparency. This is increasing the pressure on financial
services companies since they have to manage larger volumes of
data, resulting in high data management costs.
FinQloud will help financial services companies to deal with the
increased compliance requirements and enable them to focus
resources on revenue-generating activities by providing a
comprehensive solution with features such as infrastructure data
management, virtualization and hosting. Initially the platform will
offer Regulatory Records Retention - a storage and retrieval tool
aimed at saving cost and simplifying the fulfillment of the record
retention obligations of the U.S. Securities and Exchange
Commission Rule 17a-4 - and Self Service Reporting - a tool that
allows swift on-demand analysis and reporting of stored trade
Regulatory Records Retention is expected to be launched within
the next few months. However, the users will have to comply with
certain safety measures in the interest of data security and
regulatory requirements. Firstly, they will have to submit certain
documents to their applicable regulator to use the application.
Moreover, all connections to the platform will go through a
scrupulous encryption management system housed in NASDAQ data
FinQloud will facilitate cost saving for the companies by
preventing expensive infrastructure expenditures. Moreover, its
application is not restricted to companies that handle data from
NASDAQ. Rather, it can be used for managing data from any
The platform brings together the flexibility, safety and
cost-effectiveness of Amazon Web Services' infrastructure with the
technology and advisory service providing expertise of NASDAQ. The
stock exchange has a history of providing financial services to
exchanges, regulators and broker-dealers who have to deal with
complicated international regulations.
NASDAQ, which competes with
NYSE Euronext Inc.
), currently carries a Zacks #4 Rank, which translates into a
short-term Sell rating. We maintain a long-term 'Neutral'
recommendation on the stock.
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