LONDON (Reuters) – A bulk of the trading in the $6.6 trillion-a-day foreign exchange markets is expected to be on cloud technology over the next five years, according to a survey conducted by fintech firm Integral.
Two-thirds of 94 heads and senior managers in currency trading at banks and buy-side institutions, surveyed between September 2020 and January 2021, expect to adopt the secure and cost effective cloud based solutions to “a significant degree” from just 26% now.
Cloud technology, as against the widely used on-premise technology in foreign exchange trading, is hardly a new concept with companies increasingly using it to make data management more cost-effective, centralised and efficient.
Covid-19, in part, has accelerated this trend.
“As the Covid-19 pandemic took hold in 2020, market participants realised that a remote working environment is not only a reality, but one that isn’t going away in the near term,” Integral said in a statement.
Making remote trading secure and efficient is seen as the greatest workflow challenge currently, it said, a finding that has been echoed in other surveys by market participants in recent weeks.
(Reporting by Thyagaraju Adinarayan; Editing by Saikat Chatterjee)