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FinTech Trends 2018: How Technology is Rewriting the Capital Markets

Nasdaq has been at the forefront of financial technology since our inception back in 1971 when we launched the world's first electronic stock exchange. Today, we hold innovation in the same high regard, though our approach now has the benefit of nearly five decades of experience and an abundance of technologies we had been dreaming of back in those early days.

Recent advances in technologies such as blockchain, cloud computing, machine intelligence, behavioral science, and other areas provide us with the opportunity to literally rewrite tomorrow and drive our industry forward in entirely new ways. Indeed, Nasdaq has adopted a new strategic positioning with this future in mind, prioritizing businesses like market technology and information services that provide the greatest opportunities for growth.

The environment in which we operate lends itself to these priorities and can best be understood by examining four key trends:

  • First is the development of the marketplace economy, an evolution in the purchase and sale of non-financial assets using market mechanisms that allow for real-time negotiation on price. These mechanisms represent the backbone of our exchange business and their application outside of the capital markets is very exciting.
  • The second trend we see is investment banks demonstrating a real interest in working with partners like Nasdaq to develop new technologies that can drive their businesses into the future.
  • Third, it is impossible to overlook the explosion in available data of all types, which combined with advances in machine learning create myriad opportunities in market surveillance, data analytics and in the capital markets themselves.
  • Finally, investment management has become increasingly competitive with a strong focus on technology-powered areas including the shift to passive from active investing and the growth of quantitative strategies. Here, again, innovation is at a premium.

Given the importance of technology to our industry and the opportunities presented by these long-term trends, we are pleased to offer you Nasdaq's view on the current state of financial technology.

Via the URL below, you will find our latest thinking on the major innovations we see both now and in the years to come. At Nasdaq, we work with these technologies and developments every day. They energize us and keep us focused on our path forward into an exciting future.

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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.