The digital transformation in capital markets and global banking has just entered a new chapter. Nasdaq and Amazon Web Services (AWS) announced the expansion of their technological partnership to offer financial institutions the ability to deploy Nasdaq Calypso as managed service on AWS. The goal is clear: modernize the end-to-end infrastructure, strengthen the resilience of critical systems, and open the door to large-scale innovation — in a sector where regulatory pressure and operational complexity coexist with the need to innovate faster.
Nasdaq Calypso: a technological pillar for markets
Calypso is a capital markets and treasury management platform that enables banks, asset managers, brokers, and regulators to handle front-to-back office workflows, perform real-time risk calculations, and comply with increasingly demanding regulatory mandates. Until now, many entities deployed and maintained Calypso in their own data centers, bearing the burden of the underlying infrastructure.
The innovation is that Calypso will now be available as a managed service on AWS, with technology managed directly by Nasdaq. This means organizations no longer need to allocate resources for maintaining the underlying technology, but can deploy faster, receive continuous updates, and always operate on the most advanced version, backed by AWS’s security and resilience along with Nasdaq’s regulatory expertise.
The context: a sector caught between innovation and legacy systems
This announcement arrives at a critical moment. Market participants face a technological paradox: rapidly innovate their stacks to meet new regulatory demands and global connectivity, while maintaining legacy infrastructures that are essential for critical operations.
Magnus Haglind, Head of Capital Markets Technology at Nasdaq, describes it as “a strategic inflection point” for the entire ecosystem. He explained that cloud-managed services are no longer optional; they are the preferred path for mission-critical platforms. The expanded partnership with AWS aims precisely to lead this transformation across the industry.
From AWS, John Kain, Financial Services Market Development Director, highlighted the same dilemma: “Institutions need to innovate quickly but without compromising the stability of their critical operations.” In this context, AWS offers the scalability, security, and performance necessary for Nasdaq to strengthen Calypso as a more agile, future-ready service.
Tangible benefits for banks and markets
The managed deployment model of Calypso on AWS presents a comprehensive response to key current challenges:
- Accelerated modernization: thanks to the joint commitment of Nasdaq and AWS in areas such as digital assets, artificial intelligence, and elastic computing power, including AWS Elastic Data Grid for faster, optimized risk calculations.
- Simplified regulatory compliance: with standardized deployment, regular updates, and flexibility to meet new regulations without major disruptions.
- Operational efficiency: a simpler testing environment and the ability to adapt the platform to customized integrations and tailored data flows.
- Advanced analytics: access to Nasdaq’s data management and intelligence ecosystem, powered by AI-driven analytical capabilities that extract value from integrated data.
The impact is global: Nasdaq emphasizes that its technology is used by 97% of the world’s systemic banks (G-SIBs), half of the top 25 global stock exchanges, 35 central banks and regulatory authorities, and more than 3,800 clients across the financial sector.
A model aligned with market convergence
This move reflects a broader trend: convergence of critical platforms within managed cloud environments. It reduces friction in real-time data flows, simplifies architectures, enhances efficiency, and enables advanced analytics—including generative AI. Ultimately, it aims to create a more connected, resilient, and future-proof financial infrastructure.
For banks and investment firms, Nasdaq and AWS’s joint approach means relying on a single layer of infrastructure, governed by mission-critical security standards, capable of supporting increasing loads—from margin calculations and collateral management to multijurisdictional regulatory compliance.
Strategic implications: resilience, costs, and trust
The shift to Calypso as a managed service on AWS involves several key considerations:
- Enhanced resilience: operating on AWS provides geographic redundancy, near-infinite scalability, and proven security—crucial factors in a sector where technological failures can have systemic consequences.
- Reduced infrastructure costs: organizations can focus on core business activities instead of maintaining servers, updates, or complex integrations, reducing the Total Cost of Ownership (TCO).
- Regulatory confidence: Nasdaq’s brand and AWS’s infrastructure aim to instill trust among regulators and supervisors, who increasingly value centralized governance and continuous auditing in critical systems.
- Accelerated innovation: with a managed foundation, banks can focus on incorporating new capabilities—for example, AI in risk management, compliance, or market prediction.
A step forward in a long-standing partnership
This announcement is not isolated; it joins a series of joint initiatives between Nasdaq and AWS aimed at modernizing capital markets technology. Both companies already collaborate on regulatory and market platforms designed to bring critical solutions into a managed environment, eliminating silos and reducing friction that have historically slowed the sector.
As the adoption of managed platform models increases, other areas of the financial infrastructure—such as settlement systems, payments, and risk solutions—are expected to follow suit. The promise of efficiency, security, and global connectivity makes this a compelling prospect.
Conclusion
The deployment of Nasdaq Calypso as a managed service on AWS exemplifies the future of financial infrastructure: open, cloud-managed, resilient, and prepared for regulatory and technological innovation. In a world where reaction time is as critical as compliance, this alliance aims to provide institutions with a platform they can trust today and build on tomorrow.
For Nasdaq and AWS, it’s not just about migrating a platform to the cloud but about redesigning the global financial system’s technological map. The message is clear: tomorrow’s critical infrastructure will be modular, managed, and scalable, with the cloud at its core.
Frequently Asked Questions
What is Nasdaq Calypso and what is its role in financial markets?
It is a capital markets and treasury management platform that facilitates front-to-back workflows, risk calculations, margin management, collateral handling, and regulatory compliance. It is now available as a managed service on AWS, with Nasdaq-managed infrastructure.
What benefits does deploying Calypso as a managed service on AWS provide?
It removes the need to maintain proprietary infrastructure, accelerates deployment, ensures continuous updates, and offers greater resilience, security, and operational efficiency. It also grants access to new AI and data capabilities.
Which financial institutions use Nasdaq’s technology?
According to the company, its technology is present in 97% of global systemic banks, half of the world’s top 25 stock exchanges, 35 central banks, and over 3,800 clients across the financial industry.
How does this partnership aid in meeting global financial regulations?
The AWS-managed model offers standardized implementation, regular updates, and flexible tools to adapt to new regulations. It also simplifies auditing, data lineage, and centralized governance—key factors in responding effectively to regulators across jurisdictions.
via: Amazon