Nasdaq Expands Bank and Broker-Dealer Risk Platform into Asia
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Insights
The partnership between Nasdaq and Kiatnakin Phatra Securities (KKPS) marks a strategic move for both entities, with implications for the broader Asian financial market. By securing KKPS as its first Risk Platform client in Asia, Nasdaq is not only expanding its global footprint but also affirming its role in the modernization of financial services in the region. This move could potentially increase Nasdaq's revenue streams and market share in Asia, a region with high growth prospects. Additionally, the adoption of Nasdaq's Risk Platform by the largest institutional broker in Thailand could serve as a catalyst for other financial institutions in the region to follow suit, thereby creating a network effect that may boost Nasdaq's business in the future.
The cloud-based SaaS solution offered by Nasdaq allows for rapid onboarding and reduced operational overhead for KKPS, which aligns with the broader industry trend towards cloud computing and managed services. This could lead to improved operational efficiencies and cost savings for KKPS. Moreover, the ability of the platform to scale during periods of high volatility is critical, as it can help KKPS manage risk more effectively, thereby potentially reducing losses and improving trust among clients and stakeholders.
For investors, the partnership could signal Nasdaq's commitment to innovation and global expansion, which may be seen as positive indicators for the company's growth trajectory. However, the impact on Nasdaq's financials will depend on the platform's adoption rate across the region and the competitive landscape of risk management solutions in Asia.
The strategic entry of Nasdaq's Risk Platform into the Thai market, through the partnership with KKPS, is indicative of the increasing demand for sophisticated risk management tools in emerging markets. As Asian financial markets grow and mature, the need for real-time analytics and risk management capabilities becomes more pronounced. This trend provides a fertile ground for Nasdaq to introduce its technology and services.
From a market research perspective, the collaboration is likely to set a precedent for the adoption of advanced financial technologies in the region. The financial sector in Thailand and by extension in Asia, is on a trajectory towards rapid modernization, as evidenced by the recent upgrades to the Stock Exchange of Thailand's infrastructure using Nasdaq's technology. This could lead to increased market efficiency and attractiveness to foreign investors, which in turn may lead to higher trading volumes and more business opportunities for service providers like Nasdaq.
The announcement also reflects a growing recognition of the importance of cloud-based solutions in the financial industry, which could influence the strategies of other market participants and service providers. The ability of Nasdaq's platform to deliver new functionality every three weeks demonstrates agility and a commitment to continuous improvement, which are key competitive advantages in the technology sector.
The partnership between Nasdaq and KKPS underscores the importance of cloud-based, as-a-service offerings in the financial technology space. By leveraging a SaaS model, Nasdaq is enabling KKPS to streamline its risk management processes without the need for extensive on-premises infrastructure. This is a significant technological shift that can lead to a more resilient and agile operation for KKPS, particularly during times of market stress.
Furthermore, the continuous delivery of new functionalities to clients at three-week intervals represents a significant departure from the traditional model of software development and deployment in the financial industry. This could drive innovation and allow KKPS to quickly adapt to changing market conditions. Moreover, the scalability of the service is crucial for handling spikes in trading volume, which are common during periods of uncertainty or economic turmoil.
From a technology perspective, the adoption of Nasdaq's Risk Platform by KKPS may encourage other financial institutions in Asia to consider cloud-based solutions for risk management. Nasdaq's role in this digital transformation could be a harbinger of increased demand for similar technologies in the region, potentially leading to a new standard for real-time risk monitoring and control in Asian financial markets.
Nasdaq Risk Platform secures first customer in Thailand, serving as an anchor client in Asia
Significantly enhances Kiatnakin Phatra Securities’ real-time risk capability, providing a competitive advantage
Reflects Nasdaq’s pivotal role supporting modernization of Thailand’s financial services ecosystem
NEW YORK and BANGKOK, Feb. 13, 2024 (GLOBE NEWSWIRE) -- Nasdaq (Nasdaq: NDAQ) today announced it has secured the first client to adopt its Risk Platform in Asia having signed a multi-year agreement with Kiatnakin Phatra Securities (KKPS), the largest institutional broker in Thailand. The deal provides a launchpad to offer the product to banks and broker-dealers across the region, building on the experience and capabilities developed serving clients across major markets in the U.S. and Europe.
The Nasdaq Risk Platform is widely used by financial institutions globally, providing a live view of risk across proprietary and client trading portfolios with detailed analytics to support real-time decision-making. As market volumes and participation grows, it will be increasingly important to adopt more sophisticated risk management practices and tools.
The Stock Exchange of Thailand has a clear strategy to enhance its market infrastructure, incorporating industry best practice and state-of-the-art technologies. Last year it launched a new exchange trading system, alongside market data distribution and market surveillance systems, based on Nasdaq technology. Today’s announcement also expands Nasdaq’s partnership with KKPS, with the company already using Nasdaq Trade Surveillance technology to further enhance trust and transparency in the market.
“Nasdaq is playing a pivotal role at the heart of Thailand’s market modernization story, supporting the development of a deep and sophisticated ecosystem of capital market participants,” said Magnus Haglind, SVP and Head of Marketplace Technology at Nasdaq. “Institutional grade technology is a critical enabler of well-functioning markets, which ultimately help drive inclusive growth and prosperity across the wider economy. A key component of that is having a risk platform capable of navigating increasingly complex markets, which also serves as a great competitive advantage, unlocking overnight liquidity, improving capital efficiency, and protecting underlying clients.”
As a cloud-based service KKPS will benefit from a rapid onboarding process. The SaaS solution is fully managed by Nasdaq, which will allow KKPS to focus on executing its core strategy.
Dr. Thananun Siwamogsatham, Head of Risk Management at KKPS, added: “We are excited to elevate our partnership with Nasdaq to enhance KKPS’ risk platform. Together, we aim to set a new standard for precision, insight, and adaptability in real-time risk monitoring and control. This collaboration highlights our dedication to pushing the boundaries of innovation in risk management, and we look forward to leveraging the strengths of both entities to create value for our clients and stakeholders.”
The platform also has the ability to scale quickly during times of significant market volatility, when live stress testing and risk management capability is essential. New functionality and capabilities are delivered to all clients every three weeks, which enables business development cycles that are much more agile compared to traditional on-premises software installations.
About Nasdaq
Nasdaq (Nasdaq: NDAQ) is a leading global technology company serving corporate clients, investment managers, banks, brokers, and exchange operators as they navigate and interact with the global capital markets and the broader financial system. We aspire to deliver world-leading platforms that improve the liquidity, transparency, and integrity of the global economy. Our diverse offering of data, analytics, software, exchange capabilities, and client-centric services enables clients to optimize and execute their business vision with confidence. To learn more about the company, technology solutions, and career opportunities, visit us on LinkedIn, on X @Nasdaq, or at www.nasdaq.com.
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