The convergence of cognitive data analytics and ‘always on’ market activity is reshaping the infrastructure that underpins global capital markets. The shift to 24-hour trading and accelerated settlement means more and more systems fall under the banner of ‘mission critical’. Meanwhile, financial institutions are locked in a race to unlock siloed sources of data to embrace the transformative power of AI and deliver faster, smarter decisions. Moving money and assets around the clock demands new models of connectivity, capacity and operational resilience.
In the Asia context, this shift represents a significant challenge and a huge growth opportunity in equal measure. As the region’s economies continue to develop their local ecosystems and attract global capital, the question is no longer whether transformation is needed – but how quickly market operators and regulators can act to prepare for what’s next.
This is not simply a matter of upgrading technology. It is a fundamental rethinking of how financial institutions manage and maintain their operational architecture. Legacy systems – siloed, batch-processed, under-invested and increasingly rigid – are struggling to support modern operational demands. But in this new paradigm, failure is not an option.
Unleashing The Power Of Data
At the heart of this transformation lies data. Institutions are locked in a race to unlock siloed sources of information to embrace the transformative power of AI. The goal is clear: deliver faster, smarter decisions through real-time access to insights, leveraging agentic capabilities to drive tangible business outcomes. But legacy architecture, fragmented across jurisdictions and asset classes, simply cannot support the scale, agility or intelligence required.
A recent Nasdaq survey of nearly 400 market participants across global capital markets, produced in partnership with the ValueExchange, underscored the urgent challenges facing market operators and regulators across Asia-Pacific, particularly in post-trade. More than 60% of respondents cited corporate action errors and settlement inefficiencies as persistent pain points. Nearly half reported being blocked or limited in their ability to fully invest in the region due to high post-trade costs and error rates. And 39% of market systems in Asia are more than a decade old – almost double the global average.
These findings point to a deeper structural issue: the inability of many institutions to unify and mobilise their data across fragmented systems, often operating multiple platforms across individual markets within the region. Without integrated, interoperable data environments, the deployment of AI at scale remains aspirational. The same limitations hinder the ability to adapt to new asset classes – such as tokenised securities and digital assets – which demand real-time processing, flexible data models and seamless cross-border connectivity. Case in point: 15% of survey respondents said they planned to hold tokenised assets in APAC as a position by 2027.
Yet there are signs of momentum. From an innovation perspective, tokenisation and AI are gaining an increasing foothold in the operations of Asian market participants. For example, the Monetary Authority of Singapore recently sought to enable settlement in tokenised bank liabilities and well-regulated stablecoins. Bank Indonesia is drawing on DLT to develop a wholesale central bank digital currency. And many of the region’s market infrastructure providers are laying the foundations for future AI use by addressing their data strategy.
This growing appetite for advanced capabilities signals a readiness to embrace the future. However, the survey also revealed a critical gap: many market participants still lack active change plans, instead operating a piecemeal approach to modernisation. Collectively, they have the opportunity to catapult Asia-Pacific to the forefront of this new wave of innovation, but must set out a clear roadmap to upgrade mission-critical infrastructure. Bridging this gap must become a strategic priority.
Achieving The Potential Of Asian Capital Markets
Drawing on lessons learned from Nasdaq’s own path to modernisation and its experience helping to develop capital market ecosystems around the world, I propose a four-step roadmap:
Align market practices and rules in post-trade processing.
Establishing regional standards and best practices – particularly in corporate actions, where manual interventions remain stubbornly high – is the foundation for interoperability. This alignment is essential to reduce friction, improve accuracy and enable data to flow freely across systems and borders.
Harmonise and consolidate infrastructure between developed and emerging markets.
Reducing the operational burden of multi-market participation requires more than bilateral links. It demands a coordinated effort to unify processes and platforms, creating a more cohesive and resilient regional ecosystem.
Modernise legacy technology stacks.
Registry systems, custody platforms and settlement infrastructure are showing their age. These are the systems most frequently cited as barriers to change – and the ones most critical to enabling real-time data access, analytics and automation. Institutions must prioritise investment in scalable, cloud-enabled platforms that can support continuous innovation.
Build for the future of finance.
With a modernised foundation in place, market ecosystems can prepare for the next wave of innovation – AI, tokenisation and digital assets. These technologies are no longer theoretical. They are already reshaping how markets operate, and their success depends on agile, data-centric infrastructure.
This roadmap is not just about efficiency. It is about strategic readiness. As financial institutions increasingly blend build-and-buy strategies to accelerate access to advanced capabilities, the role of external infrastructure partners becomes more critical. Institutions are no longer looking for point solutions – they are seeking comprehensive platforms that offer optionality, resilience and intelligence at scale.
Across Nasdaq’s own client base, we see this shift first-hand as market operators and participants modernise their architecture, break down data silos and increasingly harness the full potential of AI and advanced analytics. This is not about replacing systems – it is about reimagining what connected infrastructure can enable.
The stakes are high. The longer data remains fragmented, the more difficult – and costly – it will be to catch up. But with coordinated leadership, Asia’s capital markets can leapfrog legacy constraints and build a post-trade model that is not only fit for purpose, but future-proof.
The next era of market infrastructure will be defined by those who can turn data into intelligence and resilience into competitive advantage. The institutions that act now – those that embrace harmonisation, invest in modernisation and prepare for continuous innovation – will be the ones best positioned to lead the next generation of the global financial system.