In a recent survey conducted by The Association of National Exchanges Members of India (ANMI), involving over 900 exchange brokers and members, it has been unveiled that 82.3 percent of Indian stockbrokers are gearing up to invest in cybersecurity measures to fortify the resilience of their businesses against cyber threats.
The comprehensive survey, focusing on technological trends in the stockbroking industry and the level of technology penetration in the capital markets, also disclosed that 53.1 percent of respondents reported having encountered no IT-related problems in 2023. However, compared to the previous year’s survey, there was a notable surge in IT-related issues, prompting stockbrokers to allocate a 20 percent increase in technology expenditure in 2023.
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The industry’s transition from physical to digital operations was unmistakable, with 25–50 percent of business operations making the shift to digital platforms. Interestingly, the findings also highlighted a growing inclination among stockbrokers towards cutting-edge technologies like algorithmic trading and artificial intelligence (AI).
Algorithmic trading has witnessed a surge in popularity among stockbrokers in recent times, with a notable shift towards technology-based algorithms to enhance customer experience, as revealed by the survey.
Moreover, the survey shed light on the sustained demand for IT professionals due to the ongoing digitization of business operations, prompting substantial investments in technology. A significant 71.1 percent of the participants are contemplating expanding their workforce or recruiting new talent to reinforce their IT teams.
V S Sundaresan, Executive Director of SEBI, acknowledged the transformative power of technology and emphasized the need for caution 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.”
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Milan Parikh, Chairman of ANMI Western Region, highlighted the integration of stock market investing capabilities into product offerings driven by API-based brokerage firms. He mentioned, “The popularity of algorithmic trading is increasing day by day, and there are numerous algorithmic trading software available in the market which can help traders in automating their trading activities.”
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.”
