According to a recent survey conducted by The Association of National Exchanges Members of India (ANMI), which included over 900 exchange brokers and members, it has been disclosed that 82.3 percent of Indian stockbrokers are preparing to invest in cybersecurity measures to strengthen the resilience of their businesses against cyber threats.
The survey, focusing on technological trends in the stock brokering industry and technology penetration in capital markets, also revealed that 53.1 percent of respondents reported having no IT-related problems in 2023. However, a comparison with the previous year’s survey highlighted a surge in IT-related issues, prompting stockbrokers to allocate a 20 percent increase in technology expenditure in 2023.
The shift from physical to digital operations was evident, with 25–50 percent of business operations transitioning to digital platforms. Importantly, the findings showcased a growing interest among stockbrokers in cutting-edge technologies such as algorithmic trading and artificial intelligence (AI).
Algorithmic trading has gained popularity among stock brokers, with a focus on technology-based algorithms to enhance customer experience, as indicated by the survey. Moreover, the survey revealed that with the ongoing digitization of business operations, there is a sustained demand for IT professionals, leading to significant investments in technology. Notably, 71.1 percent of the participants are considering expanding their workforce or recruiting new talent to strengthen 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.”
Milan Parikh, Chairman of ANMI Western Region, highlighted the integration of stock market investing capabilities into product offerings 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.”
