Technology – the new competitive advantage for trading floors

By Nizar Hneini, Saumitra Sehgal and Luca Turba

The role of technology in stock exchanges is undergoing a fundamental shift. What was once a behind-the-scenes enabler is now a strategic driver of competitiveness and market leadership. Exchanges are evolving into tech-powered platforms, accelerating execution, monetizing data and integrating seamlessly into the capital markets ecosystem. We look at how stock exchanges are driving this transformation and what it takes for them to collaborate effectively with tech providers. From infrastructure to AI-driven analytics, we explore how exchanges can harness technology – not just to keep pace, but to lead.

From functional enabler to strategy driver

Until recently, the role of technology in stock exchanges – as in most corporations – was largely functional. Systems were designed to automate back-office post-trade processes such as clearing and settlement, while ensuring continuity and meeting regulatory requirements. Technology supported operations, but rarely influenced the strategic direction or operating model. But that approach to technology is no longer fit for purpose. In today’s ultra-fast trading environment, technology has become the key to scale, execution and competitiveness. It enables real-time data monetization, powers advanced analytics and AI, and underpins seamless integration into the capital markets ecosystem. Increasingly, it also shapes product design and the investor experience. As a result, exchanges that treat technology as a strategic asset are now redefining the competitive landscape.

Unlocking advantages through tech partnerships

Strategic partnerships with technology providers are a critical lever for stock exchanges seeking to scale faster, innovate more rapidly and sharpen their competitive edge. The right collaborations can unlock purpose-built solutions across a range of high-impact areas:

1. Execution speed and high-frequency trading – Advanced infrastructure enables microsecond-level execution, supporting algorithms that process millions of trades daily with precision
2. Market infrastructure resilience – Core systems supplied by tech companies enhance the reliability and continuity of exchange operations, providing enhanced cybersecurity frameworks, comprehensive regulatory safeguards and improved protection against evolving threats
3. Data and analytics quality – Real-time market data and AI-powered analytics mean better surveillance, client services and decision-making. Proprietary data can also be monetized as a scalable new revenue stream
4. Modular platforms and integration – API-based ecosystems and modular architectures allow seamless integration with brokers, member firms, financial technology companies, regulators, etc. and support faster deployment of digital services such as listing portals and investor dashboards
5. Operational efficiency and cost optimization – Shared service platforms and automation reduce overheads through off-the-shelf solutions for clearing, data processing and infrastructure, while minimizing manual processes

Collaboration challenges

Partnering with specialized tech providers can give stock exchanges a competitive edge, enhancing their performance, improving efficiency and enabling faster innovation. But the path to impact is rarely straightforward. Regulatory misalignment is a common hurdle, with some vendors failing to meet compliance or data residency requirements. Off-the-shelf solutions may require extensive customization to meet the demands of complex, tightly regulated environments. Limited visibility into product roadmaps or system architecture can complicate long-term planning, while inflexible pricing models may be unable to adapt to stock exchanges’ unique scaling requirements or fast-evolving needs. Capturing the full upside of these partnerships – and preventing potential disruptions to day-to-day business – calls for careful structuring and close alignment across strategy, technology and operations.

Looking ahead

Stock exchanges are no longer mere financial utilities: They are evolving into full-fledged technology platforms in their own right. From high-speed trading and intelligent data services to seamless ecosystem integration, technology is fast becoming the defining source of competitive advantage. Exchanges that recognize tech as a strategic asset – and build the right partnerships to harness it – will shape the next chapter of global capital markets.

How can we help?

Roland Berger’s work at the intersection of capital markets and technology gives us a deep understanding of how stock exchanges can harness digital transformation. The examples below span from strategic to operational domains, highlighting our experience in shaping future-ready technology infrastructure. Our broad range of engagements has strengthened our ability to take a holistic view of both the challenges and the opportunities facing stock exchanges and other related financial institutions.

On one hand, we are equipped to support from a strategic angle, to define long-term tech journeys. For instance, Roland Berger supported a leading stock exchanges to define a comprehensive Technology Strategy including a clear long-term path to success. To fulfill a very ambitious aspiration to become a leading global exchange, the client needed to assess how technology can play a significant role in achieving that positioning. We identified the strategic baseline, performed a 360 degree technology assessment, defined the target tech ambition, derived the tech path to get there assessing multiple long-term development directions, and lastly finalized the selected tech journey including business case, updated target operating model, implementation roadmap, and delivery activation.

On the other hand, we can also help on more operational enhancements. For instance, Roland Berger supported a stock exchange to re-align the entire Target Operating Model to ensure successful preparation for the deployment of a new technology ecosystem, to ensure uplift of both capacity and capabilities needed for the structural transition ahead. We mapped the current state and its challenges, benchmarked it against best-in-class stock exchanges leading on specific technological domains, derived the target state, and ultimately defined concrete improvement actions to structurally fill any potential gap.

Thanks to the lessons learned derived from these numerous programs and the experience matured, we are in a unique position to effectively guide stock exchanges in drafting their strategic journeys to fully capture the potential from new technologies as well as to deploy concrete tech and operational solutions that fits specific needs. The road ahead is challenging but at the same time will be rewarding for stock exchanges that are able to capitalize on technological advancements guided by the right approach and with a carefully planned transition.