“The market has moved from transaction to a lot of other parts of the transaction chain – to pre-trade, post-trade, clearing and post-clearing.”
Peter Fredriksson, CEO of Baymarkets, says OM, the company that eventually became Nasdaq OMX, basically invented transaction technology. In his view, Stockholm and more broadly, Sweden, have been pioneers in automating the financial markets and making them more efficient.
Stockholm was even early in the exchange merger and acquisition space, paving the way for OM to acquire the Stockholm Stock Exchange. And that led to industry innovators like ORC (now Itiviti), Sungard (now FIS) and TriOptima (now part of NEX Group) to grow. The next FinTech boom will be in “RegTech,” Fredriksson says, as firms grapple with US and European regulations after the 2008 financial crisis. He also sees opportunities across the whole transaction chain: pre-trade, post-trade and clearing.