Transforming markets: Innovations shaping the future of capital markets

Guy Melamed, co-founder and chief executive officer at Exberry, discusses the current capital markets landscape, key challenges facing exchanges and market operators, successful partnerships within our ecosystem and the firm’s vision for the future of capital markets technology.

What makes this period in capital markets unique?

Guy Melamed, co-founder and chief executive officer at Exberry

In today’s capital markets, we’re witnessing a period marked by an extraordinary cadence of changes. The confluence of technological innovation, evolving regulatory frameworks, and shifting investor behaviour is unlike any other time in history. This era is juxtaposed with significant infrastructure changes: the rise of cloud computing, AI and SaaS operations. These advancements are enabling a level of flexibility, agility and innovation that traditional solutions cannot match.

Meanwhile, regulatory pressures and the demand for compliance are driving markets to adapt rapidly, even as they navigate complex risk environments. Investor behaviour is also transforming, with growing engagement and diversification into new asset classes. This unique combination of factors creates an unprecedented landscape, presenting both challenges and vast opportunities for growth.

What are the primary challenges facing exchanges and market operators today?

Exchanges and market operators are grappling with several primary challenges today. The changing velocity of technology and human resources demands that we attract the right talent to keep pace with new trends and manage technological infrastructure that can endure for the next 10-20 years. Regulatory requirements are becoming increasingly complex, creating the need for agile compliance processes. Cybersecurity risks are escalating, necessitating robust measures to ensure the resilience and trust of market infrastructure. Ethical AI considerations are also paramount, as we must leverage emerging technologies responsibly. These challenges require a balanced approach to innovation, regulation, and security to maintain competitive and secure markets.

We address these challenges head-on by providing sophisticated technology solutions that streamline compliance processes, enable modernisation without disruption, enhance cybersecurity measures, and differentiate exchanges with innovative offerings and personalised service.

What trends do you see shaping the future of capital markets?

The future of capital markets will be shaped by several transformative trends. From an infrastructure standpoint, the move to cloud computing is inevitable, offering efficiency gains and freeing up resources for more strategic initiatives. The integration of AI will revolutionise how new markets and assets are tested and launched, altering regulatory dynamics and operational models. We see the rise of new asset types such as digital assets, ESG investments and DLT-based settlements.

The market will also support more sophisticated new entrants, such as the new Texas Stock Exchange (TXSE) and Abaxx Commodities Futures Exchange, who are driving the creation of advanced markets. Additionally, the emergence of new investor types demanding 24/7 trading capabilities will necessitate specialised solutions, often hybrid in nature, blending built and bought technologies. These trends will drive the evolution of capital markets, making them more dynamic, inclusive and resilient.

Can you share some examples of successful collaborations or partnerships that Exberry has formed within our ecosystem?

We have established several impactful collaborations within our ecosystem, demonstrating our commitment to innovation and market excellence. Our partnerships with leading cloud providers (such as Amazon Web Services (AWS), Google Cloud Platform (GCP) and Microsoft Azure) stand out, as we work together at the cutting edge of latency reduction, AI integration and market operations. These collaborations are pivotal in enabling cloud-based trading solutions that enhance efficiency and agility. We still need to see much more work done in this area, however, so watch this space.

We’ve also teamed up with a central counterparty clearing system to support evolving market needs. This includes pioneering advanced settlement methodologies like DLT-based solutions and tokenisation, which can aid with the seamless integration of new asset classes. In addition, we have established partnerships with prominent industry associations to help promote best practices in regulatory compliance.

These partnerships not only enhance our technological capabilities but also ensure we remain at the forefront of market developments, delivering state-of-the-art solutions that drive growth and resilience in the financial trading industry.

What is your vision for the future of capital markets technology?

Our vision for the future of capital markets technology is one of diversification and agility. We see a landscape where both on-premises and cloud solutions coexist, leveraging SaaS delivery to significantly reduce operational costs and enable faster deployments and market testing. This approach eliminates the long waits traditionally associated with incumbent providers, allowing for rapid feature implementation, which also satisfies regulatory compliance demands.

AI will play a crucial role in operations, surveillance and risk management, driving efficiencies and enhancing market integrity. We envision T+0 settlement becoming the norm, revolutionising transaction speeds and reliability. Additionally, sustainable financial models for ESG 2.0 markets and the integration of new asset types will be key focuses.

Our commitment to continuous innovation and leveraging emerging technologies like AI, machine learning and blockchain will ensure that capital markets are more efficient, transparent and trustworthy, empowering exchanges and market operators to thrive in a rapidly evolving landscape.