Nasdaq (NASDAQ:NDAQ) has announced the successful migration of its third market, Nasdaq GEMX, to Amazon (NASDAQ:AMZN) Web Services (AWS), marking a significant step in modernizing the global financial ecosystem. The move to AWS's cutting-edge cloud infrastructure has resulted in a 10% improvement in latency and the ability to swiftly adjust capacity to meet the dynamic conditions of today's markets.
The transition of GEMX, which processes an impressive 12 billion messages daily, follows the successful migrations of Nasdaq MRX in December 2022 and the Nasdaq Bond Exchange earlier in 2023. These migrations are part of a broader strategy by Nasdaq to leverage cloud technologies for enhanced performance and innovation within the capital markets.
Tal Cohen, Co-President of Nasdaq, highlighted the company's dedication to harnessing the power of cloud technology to meet the high-performance demands and regulatory requirements of the financial industry. In collaboration with AWS, Nasdaq has developed an innovative edge computing system based on AWS Outposts. This technology enables market operators and participants to make rapid adjustments to operational systems and strategies, ensuring they remain at the forefront of industry changes.
In addition to these technological advancements, Nasdaq is expanding its primary data center within Equinix (NASDAQ:EQIX)'s NY11 International Business Exchange (IBX) in Carteret, New Jersey. This expansion is driven by increasing demand from clients, including banks and broker-dealers, for proximity to Nasdaq's trading systems. The enhanced facility will support next-generation compute workloads and offer a wider range of services to clients.
Scott Mullins, managing director of Worldwide Financial Services at AWS, expressed enthusiasm for continuing the partnership with Nasdaq to meet its long-term objectives. As of November 2023, 106 financial institutions have adopted or transitioned to Nasdaq's cloud solutions that utilize AWS Outposts. These solutions encompass surveillance, risk management, marketplace services, and clearing solutions.
InvestingPro Insights
Nasdaq (NASDAQ:NDAQ) continues to demonstrate its commitment to innovation with its successful migration to Amazon Web Services (AWS), and this move is reflected in its financial metrics and performance. According to InvestingPro data, Nasdaq has a robust market capitalization of $30.05 billion and a Price to Earnings (P/E) ratio of 23.12 as of Q3 2023. This is indicative of the company's strong position in the market and its ability to generate profits.
Two key InvestingPro Tips that stand out for Nasdaq are its history of raising dividends for 12 consecutive years and the fact that it has been profitable over the last twelve months. This underlines the company's financial stability and its commitment to rewarding its shareholders. However, investors should note that there is a declining trend in earnings per share and analysts anticipate a sales decline in the current year.
For those interested in more comprehensive insights, InvestingPro offers a wealth of additional tips and data points. These include metrics like the PEG ratio, Price/Book ratio, revenue growth, and many more, providing a holistic view of a company's financial health and performance.
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