Discover the legacy of fintech in major markets • TechCrunch


Moore says that while the number of transistors on a microchip doubles every two years, its price has halved over the same period. The past few decades have provided significant advances in power processing, allowing many applications to improve performance by upgrading hardware without fundamental architectural changes.

In the decades since Intel founder Robert E. Moore first made this comment in 1965, consumer technology has continued to innovate rapidly, and capital markets have lagged behind. Although recent physical limitations have led to improvements related to Moore’s Law, advances in distributed systems continue to innovate. In contrast, most capital markets have not benefited from such technological advances and still operate in the past.

The $924.5 billion US securities industry is still based on the mainframe technology of the 1980s. The result is systems and interfaces where market participants struggle to respond to market changes and meet the demands of information-hungry investors and regulators.

To understand how we got here today, we need to look under the hood. For decades, the main frameworks that support international capital markets have been developed to answer specific questions over a period of time. Over the years, modern technology has been deployed on the ancient infrastructure, it is only a temporary solution. Much like building a new house on an old foundation, sooner or later the foundation will unravel and the entire structure will crumble.

Simply put, silos are getting smaller and smaller to the point where it’s easier for humans to talk to each other than for the technologies to find ways to communicate. This technological debt creates broken processes, creating operational inefficiencies that hinder companies today.

Investors, like any other consumer, are accustomed to discretionary services. They expect to be able to react quickly to market events, and are looking to expand into alternative asset classes, crypto. Challenges exist for post-trade operations to meet these needs and provide the granularity, data visualization and user experience that investors and regulators need.

From cost center to competitive advantage

For many organizations, back office processes are “out of sight and out of mind” – until something goes wrong. When weighed against the borrower’s inventory, interest costs, balance sheet impact and penalties, the cost of business failure is high. It is estimated that a global trade failure rate of just 2% will cause up to $3 billion in costs and losses.

The solution is to reduce manual intervention in favor of automation and cloud-based solutions. To operate more efficiently, banks and brokers need to reduce manual processes that increase the risk of error, enable users to make smarter decisions, and use technology to identify potential risks in the transaction process.

Modernizing the post-trade technology stack is estimated to reduce costs by 20-30% in key areas such as reference data management, reconciliation, clearing and settlement, middle office, regulatory reporting and overall implementation footprint. Waves of adoption are happening across the industry – for example, in 2021 Nasdaq partnered with AWS to build the next generation of cloud-enabled infrastructure for the world’s capital markets.

Simplifying the technology behind the business and post-business functions can transform it from a cost center to a competitive advantage. But for many organizations, reform requires rewriting multiple systems with high technical debt, large resource allocations and planning costs—a daunting project with low chances of success.

Modern, high-performance computing coexists with COBOL, and microservices with mainframes. But as the value of the data increases, those who have invested in the technology and the capabilities are fast and the market changes in a day.

Modern problems require modern solutions

A modern, single platform of truth has the potential to streamline operations across teams, asset classes and geographies, reducing cost, complexity and risk. In turn, this provides easier access to capital markets for emerging managers, professional traders and institutions. In the year Founded in 2018, Clear Street is a fintech and banking premier broker that builds state-of-the-art infrastructure to improve market access for all participants.

Clear Road’s mission is to build a completely cloud-native system designed for the modern needs of a complex global market, replacing the legacy infrastructure used in capital markets from scratch. The proprietary technology platform adds greater efficiency to the market, focusing on maximizing profits and reducing risk and costs for customers.

The company’s mission is to provide all market participants, from emerging managers to large institutions, with the tools and services they need to compete in today’s fast-paced marketplace. The forces of flexibility, regulatory change, and speed have never been clearer that companies need tools that allow them to make sense of the market in real time. In a few years, the company is Running about 2.5% of US equities volume, that’s about $10 billion in activity on the platform.

Clear Street takes proven technology from the world of Silicon Valley and applies it to finance. The company’s technology stack leverages a modern cloud-native infrastructure, resilient service orchestration, event-driven real-time processing and scalable data storage – in stark contrast to the batch processing offered by mainframes. Clear Street’s entire software systems are built on this consistent and integrated technology stack, which allows components to communicate and synchronize seamlessly, eliminating the need for tedious reconciliation processes.

Now is the time to modernize the infrastructure power capital market. To keep up with the rapid pace of modernization, organizations must invest in technology to meet the demands of investors and regulators. What they do will be part of building the modern, scalable future of capital markets – improving access, speed and service for all participants.

Clear Street is an independent bank-prime broker that builds state-of-the-art infrastructure for capital markets. FinTech aims to create a single source platform to serve all investors, across all asset classes, globally. Visit for more information


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