Machine learning will disrupt exchange dealing more than blockchain

Written by on February 7, 2017 in Guest Blog with 0 Comments

Newly appointed Nasdaq Chief, Adena Friedman believes machine intelligence will transform the exchange industry more than any other technology, including blockchain.

Ask most people what technology they think will change the exchange industry and there is a good chance it will be blockchain. The technology is believed by many in the sector to be a major disruptive force. But according to Nasdaq’s new CEO, Adena Friedman, machine intelligence will transform the exchange industry more than blockchain or any other technology.

Speaking at a Goldman Sachs event, Friedman said, “if I were to pick the one technology that I think will change the industry the most, it’s definitely machine intelligence.”

Friedman believes that while blockchain “has a huge ability to change the way settlement occurs and the transfer of ownership”, machine intelligence “will allow firms to become more sophisticated in their strategies, and will also allow risk managers to become much more sophisticated in monitoring activity as well”.

Machine intelligence is no longer science fiction in the finance industry. Machines are now responsible for most of the activity on stock markets around the world. While computer or machine assisted trading is nothing new, technology has come a long way. Intelligent software that can teach itself to adapt to changing market conditions without any guidance from humans is now a reality. In 5-10 years the exchange industry will look very different. Blockchain, cloud technology and machine intelligence will transform the exchange industry beyond recognition.

In November 2016 Nasdaq launched Trading Insights, a new product suite that combines proprietary data with advanced analytics and machine learning to improve trading behaviors and performance on the Nasdaq Stock Market. Trading Insights is the first product released from the Innovation Lab set up by the exchange’s Global Information Services arm.

Adena Friedman became CEO of Nasdaq at the beginning of 2017, replacing Bob Greifeld after 14-years of leadership. Friedman began her career as an intern with Nasdaq over 20 years ago. Her appointment as the CEO of Nasdaq means she will be the first female to lead a major US exchange.

More here [finextra]

 This article was first published on The Fintech Buzz.

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About the Author

About the Author: Anthony is currently a Senior Fintech Analyst at Expert Market Insight and the Director of Content at BreakingFinance, a fintech content creation firm. After spending several years tracking and analyzing technologies and investments at Israel Venture Capital, he now focuses his time conducting research and analysis on the global fintech industry to help startups, financial institutions and finance-related companies develop insightful content. Anthony’s areas of expertise include payments, trading & investing, banking, blockchain and digital currencies. He is also the lead contributor at industry blog. .


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