Friday, January 20, 2023

ANMI StockTech Survey Reveals Industry Shift towards Tech-Driven Brokerage

With 900 member brokers, ANMI has conducted India’s largest survey on “The changing role of technology in broking”. Key highlights are: 

Over 71.43% brokers are considering aggressive hiring in their IT team

1/3rd of investment of broking firms is expected to be made in technology

80% of their business process have now shifted from physical to digital

Mumbai, 20 Jan 2023: The Association of National Exchanges Members of India (ANMI), India’s largest grouping of over 900 exchange brokers and members, released the StockTech survey report, which focused on financial market technologies. The event unveiled the results of the StockTech Survey, conducted by ANMI to provide insight into technological trends in the stock brokering industry and the extent of technology penetration in the capital markets.

The survey found that 61% of companies did not face any IT-related issues in the past year, and that 71.43% of stock brokers are considering a shift towards a technology-based model, planning to increase IT team manpower or recruit fresh talent. Additionally, an average of 30% of investment is expected to be made in technology in the 2022-2023 period.

Mr. Vaibhav Shah, Chairman, ANMI WIRC, has emphasised the importance of technology for the growth of the securities market. In a press conference held today, he highlighted the role of technology in the securities market, saying, "Use of technology is not restricted to trading but timely execution of many other functions including on-boarding clients, risk management, compliance, monitoring, reporting, safeguarding client funds and securities and many other functions." He further added, "Blockchain technology with AI and ML will create many new avenues for the healthy development of financial markets."

Kamlesh Shah, President of ANMI, said, "Technology has been a key growth driver and has provided services to investors. This has been demonstrated amply during the Covid period. It was technology and digitization that helped us to serve investors in a seamless manner be it from home or office during the Covid period."

Both leaders also stressed the need for intermediaries to invest in technology to increase the investor base, educate investors and improve infrastructure. Kamlesh Shah said, "For this, we request SEBI to recommend industry status for all SEBI registered intermediaries. This will make us at par with global peers."

Cyber security becomes very important in the new age era. Sebi has taken several effective steps, we are doing cyber audits, and taken initiative to build market security, Ms. Shweta Banerjee, DGM, SEBI.

Mr. Vaibhav Shah, Chairman, ANMI WIRC, has also emphasised the importance of streamlining compliance procedures to achieve ease of doing business and the need to upscale infrastructure including colocation facilities. They also mentioned that they are working in close coordination with SEBI through the IAC on safeguarding client funds, product suitability, framework for prevention of fraud and also on cyber securities.

With the increasing complexity of the securities market, participants are facing more challenges than ever before. StockTech helps to address these challenges by providing a range of tools and solutions that can help traders and brokers to make more informed decisions, Mr. Kamlesh Shroff, Director, National Council, ANMI

In conclusion, both leaders emphasised the need for continued reform process and a lot of technology inputs to achieve this. They also urged for the encouragement and regulation of Algo trading for retail investors.

The StockTech event is an important event for the financial industry, providing valuable insights and networking opportunities for professionals in the sector. ANMI plans to continue to provide valuable resources and opportunities for its members and the industry in the future.

This symposium provides an opportunity for leading technology players operating in this segment to showcase their innovations and global expertise in meeting the requirements of India’s broking industry.

 About ANMI:

Association of National Exchanges Members of India (ANMI) is an association comprising around 900 Stock Brokers from across the country who are members of National Stock Exchange of India Limited, The Bombay Stock Exchange, Multi Commodity Exchange and other exchanges having national presence. 

ANMI is responsible for setting rules and regulations for its member firms, as well as enforcing compliance with these rules through disciplinary action when necessary. The organisation also works to educate and train its members on best practices and industry standards. In addition to its regulatory functions, ANMI also serves as a forum for members to discuss issues and share ideas related to the securities market.

No comments: