Key Trends Influencing Capital Markets

Key Trends Influencing Capital Markets

By Capital Markets CIO Outlook | Thursday, October 15, 2020

Over the past few years, capital markets have put in a lot of effort into integrating technology and automating their trade functions. In order to eliminate the intermediaries who give settlement and depository assistance, companies are relying on Distributed Ledger Technology (DLT).

FREMONT, CA: As the competition among industries increases with constantly evolving regulations, it has become essential for companies to digitalize their businesses. Emerging technologies play a significant role in transforming various aspects of capital markets. The priorities and requirements of the capital market stakeholders have changed with time, as security and data analysis are now gaining more importance.

Let us look at some capital markets trends:

Distributed Ledger Technology (DLT)

Over the past few years, capital markets have put in a lot of effort into integrating technology and automating their trade functions. In order to eliminate the intermediaries who give settlement and depository assistance, companies are relying on Distributed Ledger Technology (DLT). With multiple intermediaries overseeing information flow, there are chances of data duplication, reconciliation errors, and settlement delays, which can have negative impacts. Many Fintech start-ups are now utilizing technologies similar to DLT for transforming capital market services and improving their finances. DLT is an efficient and logical tool that enables secure and seamless data sharing throughout the capital market ecosystem.

Data Management and Analysis

Capital markets generate high quantities of data that are processed for gaining valuable insights. Unstructured data analysis is crucial to forming trading strategies and financial models. The capital market is also utilizing the capabilities of machine learning for programming back-office procedures and improving productivity.

Cloud Technology

Cloud is essential for corporations to handle macroeconomic reservations, cost pressures, and evolving regulations. This technology helps in implementing innovations without obstacles and is the ideal way to grow businesses at a reasonable cost. Companies have been depending on hybrid clouds, which distribute relevant data between the private and public clouds while keeping sensitive information protected.

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