In a recent survey conducted by The Association of National Exchanges Members of India (ANMI), it has been revealed that a significant 82.3 percent of Indian stockbrokers are gearing up to invest in cybersecurity measures.
This proactive approach aims to fortify their businesses against potential cyber threats, aligning with the growing trend towards digital operations.
The survey, encompassing over 900 exchange brokers and members, delved into technological trends within the stock brokering industry and the extent of technology integration in capital markets. Notably, 53.1 percent of respondents reported no IT-related problems in 2023. However, a comparison with the previous year’s findings unveiled an uptick in IT-related issues, prompting stockbrokers to allocate a 20 percent increase in technology expenditure for 2023.
The shift from physical to digital operations was evident, with 25–50 percent of business operations making the transition to digital platforms. The survey also highlighted a growing interest among stockbrokers in cutting-edge technologies, including algorithmic trading and artificial intelligence (AI).
Algorithmic trading, in particular, has gained popularity among stock brokers, as they increasingly leverage technology-based algorithms to enhance customer experience.
The ongoing digitization of business operations has created a sustained demand for IT professionals, leading to substantial investments in technology. Notably, 71.1 percent of participants are considering expanding their workforce or recruiting new talent to strengthen their IT teams.
V S Sundaresan, Executive Director of SEBI, emphasized the transformative power of technology but also cautioned about the need for prudence in its adoption. He stated, “Embracing technology demands caution, as its transformative prowess brings forth both efficiency and risk. In this age of swift innovation, the responsibility to strike a delicate balance between progress and prudence rests jointly with creators and adopters alike.”
Milan Parikh, Chairman of ANMI Western Region, highlighted the increasing popularity of algorithmic trading and the integration of stock market investing capabilities into product offerings by API-based brokerage firms.
Mahesh Desai, Convenor and Executive Committee Member of ANMI Western Region, underscored the role of data analytics, artificial intelligence, and machine learning in driving advancements in the stock market industry. He added, “Data analytics and artificial intelligence have become the main drivers of technology-driven changes in the capital markets.”
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