LONDON (Reuters) - Nasdaq OMX on Tuesday launched a cloud computing platform built by Amazon Web Services which it said would allow its trading clients to cut the cost of storing financial data.
The system, FinQloud, is a response to regulators’ growing demands that companies provide more granular data on their trading activities.
Policymakers in the United States and Europe want banks and brokers to provide them with more detailed information on their day-to-day operations to help authorities spot illicit or risky trading patterns.
The world’s largest banks and brokers have historically used specialist in-house systems for data storage, citing security concerns about external platforms.
Nasdaq and AWS, which have struck a partnership deal to offer the system to the exchange group’s client‘s, said cloud computing offered a cheaper route to regulatory compliance.
AWS said all connections to FinQloud would pass through a rigorous encryption system so the platform met the strict security requirements of regulators.
“Storing and retrieving data can be done quickly, easily and inexpensively (with FinQloud),” said Andy Jassy, AWS senior vice president.
Investment banks are looking to share administrative and back office services to offset the twin pressures of falling revenues and increasing regulatory compliance costs.
Editing by Pravin Char