As part of a series of presentations at FIA Boca on Wednesday, exchange leaders weighed in on fintech. Kicking off the discussion, Terry Duffy, chairman and chief executive officer of CME Group, noted that the cost of technology at the exchanges is substantial and much more expensive than open outcry.
Nevertheless, it brings efficiencies and CME Group is constantly investing in its technology, Duffy said.
London Stock Exchange CEO David Schwimmer said that LSEG has made several recent partnerships to improve their technology, including distributed ledger technology, to be better able to serve retail investors.
And at Cboe Global Markets, Chairman and CEO Ed Tilly said exchanges need to be best in class and work to constantly improve pre-, post- and at-trade technologies. They also must have a core belief in their matching engine, he said.
Eurex builds their own technology across their entire process chain (trading, clearing and risk management). Michael Peters, Eurex CEO, said its infrastructure is robust and the exchange works with the industry to develop common communication standards.
Jeffrey Sprecher, chairman and CEO, Intercontinental Exchange, mentioned that the Depository Trust & Clearing Corporation (DTCC), a post-trade market servicer for exchange-traded and over-the-counter securities, recently issued a white paper that suggests the industry can speed settlement times. Since reaction to news is getting faster, such changes would be welcome but the whole industry needs to move to being able to do that at the same time, he said.