Blog Post

Connamara Technologies Co-Founder & CFO, Maureen Downs, Interview with Smarter Markets at FIA Boca

Posted on by Connamara Technologies

While attending the FIA Boca Conference 2024, our Co-Founder & CFO, Maureen Downs, was tapped for an interview with Smarter Markets alongside other thought leaders who provided valuable insight on seizing future opportunities within the industry.

…Now there’s an opportunity to introduce those folks to a range of new products in the futures world, in the derivatives world, in options. Those people are primed to be the next generation, but those folks are going to want technology. They want frictionless trading, they want it to be fast, easy, 24/7. The next generation who have had a taste of trading how can bring us our market into the futures market that is safe, secure, and developed.

— Maureen Downs on the changing landscape of trading.

Watch the interview or find the transcript below.

Maureen Downs Smarter Markets Interview TRANSCRIPT

David Greeley: Welcome back to SmarterMarkets. We’re at FIA Boca, and I’m joined by Maureen Downs, co-founder and CFO of Connamara Technologies. Thanks so much for taking some time to sit down with us, Maureen.

Maureen Downs: Oh, thank you so much for having me.

David Greeley: Absolutely. And I was hoping for our listeners if you could just take a few minutes to tell us a little bit about Connamara and how you see your role in the markets.

Maureen Downs: Sure, Connamara Technologies is a provider of exchange technology for new markets, for emerging markets, for established marketplaces. It’s an end-to-end, fully integrated platform solution.

David Greeley: That’s terrific. And who are your customers?

Maureen Downs: Our customers, it’s a broad range. You know, there are so many new asset classes that are emerging. So we think about crypto, think about carbon, think about events. So many of our clients are in new asset categories. Other clients are emerging markets, particularly Eastern Europe, South America, Africa. So emerging markets where markets unlike here, where markets are highly developed, their markets are just in the nascent stage. And then of course we have established exchanges, there are many exchanges around the world who are broadening their market access, broadening their customer bases, broadening their product markets. So it’s a very wide range of customers.

David Greeley: And am I right that part of what you provide are like the matching engines that enable exchanges to function in these different asset classes?

Maureen Downs: Absolutely, we have a matching engine that is just the start of it. Of course, there is market surveillance, there’s risk management, there’s banking, there’s settlement, there’s clearing, there’s all the elements that from the start of the trade all the way to the clearance and settlement and movement of the money of the trade. That’s our solution.

David Greeley: And I wanted to ask you, because my understanding is you’ve been coming to Boca since 1996, is that right?

Maureen Downs: Since years began, with one. Yes, I think my first year was 96 or 97, but it’s one of those two.

David Greeley: So you’re not one of the come latelys, that’s for sure. But I have noticed there’s a lot more technology companies, I think here over the last few years than there may have been earlier. Is that true? Is that your experience? And how do you see that having developed over the past couple of decades?

Maureen Downs: Well, absolutely. I mean, when I first came here in the late ’90s, technology was really not a factor at all. I mean, at that time, the CME and the CBT had global backs and their technologies, exchanges themselves had technologies, but there was not a wide range of front ends, back end technologies, risk management technologies. They just weren’t there. Now, as we all know, those have developed in great measure over the past 20 years, particularly because of the issues they address. It’s market access, it’s risk management, it’s compliance, all those issues that are so important. And over the years, are the issues that when you come here to Boca, the people are talking about.

David Greeley: And who are the people you find are most engaged in those conversations? Because there’s a lot of talk obviously of wanting to move everything digital, processes that are maybe very human intermediated and require a lot of paper, trying to get to solutions that are a little bit more streamlined, a little bit more efficient. Who are the folks that you find are most engaged with technology right now?

Maureen Downs: You know, it’s interesting and why it’s so important to come to this conference because whether you’re a regulator whose job is to make sure that our markets are safe and secure, whether you’re an exchange who also has an interest in making sure that there’s adequate risk management, adequate monitoring of trading, of manipulations, whether you’re a brokerage firm who is looking for solutions to make the experience better for their customers or more cost-effective for their customers, whether you’re a thought leader thinking about how all these markets, how they change over time, how they can provide better access, better experience, better safety for customers. So, it’s extremely wide. And that’s why it’s great to come here. And no matter who you sit and talk to, no matter what end of the industry they come from, we’re going to talk about technology at some level.

David Greeley: That’s great. And for people who are able to come to the conference, is there anything you’ve overheard this week that you were like, “Oh, that’s interesting, that’s new”?

Maureen Downs: Of course, there’s a lot of talk this week about AI, and not just in this industry, in every industry. But one of the conversations I’ve had multiple times this week is about thinking about the growth of the retail customer in futures. And part of that growth started with crypto and part of it started during COVID. So, a whole generation of people who had never traded anything before were introduced during COVID to the world of trading through crypto. And so, that whole generation of folks who’ve never experienced trading, now there’s an opportunity to introduce those folks to a range of new products in the futures world, in the derivatives world, in options. Those people are primed to be the next generation, but those folks are going to want technology. They want frictionless trading, they want it to be fast, easy, 24/7. That next generation who have had a taste of trading, how they can bring us our market into the futures market that is safe secure developed. A great range of products.

David Greeley: It’s a really fascinating point, right? Because these people that are new to the market, they might be new to the futures markets, but they’re also very technologically sophisticated. They’re used to things working very well, very seamlessly, as you said. And when you look around at the state of the technology in the futures industry, like what do you think we as an industry need to be doing to bring our technology up to the level of expectations and needs that this new group of investors is looking for and accustomed to?

Maureen Downs: I think certainly it has to be frictionless and seamless. And I think one of the challenges we have as an industry is many of our technologies were developed for single purpose. They might have been for the purpose of market surveillance, or risk management, or they might be front-end trading systems or analytic systems. They were built for single purpose and sometimes they don’t work easily together. They’re bits and pieces that you put together, but that next generation of trader, they want all that in one place, they can pick and choose and in a single application. So, I think we’re going to have to get better and think about how to integrate our various technology systems, all the way through payments and clearing and margining and all those things. They can exist as separate systems, but they do today, right? And thinking about the opportunity that’s there relative to what you’ve seen, the opportunities for the use of technology over the past 20 years, what do you see as the big opportunities moving forward? Is it being able to bring in that whole new group of traders into futures markets, or are there other opportunities that you see as well?

Maureen Downs: Oh, I think that’s a great opportunity. But I think there’s also an incredible opportunity in two areas. One, when we think about emerging economies, and that is large parts of South America, Africa, Asia, some of those markets who are just nascent, they look to developed markets and say, “There’s an opportunity to grow our GDP, there’s an opportunity to raise living standards for some of our producers, some of our farmers, some of our miners.” And markets can do that. I’m a big believer in exchanges because they bring price transparency, liquidity. They will have the opportunity to tighten spreads. And I think that increases the wealth for everyone. And I can’t tell you how I think that is a grand opportunity for our industry. And we at our company, we see the demand coming from all over the world to come into markets.

David Greeley: That’s terrific. Thank you so much for sharing your time, your insights, your experience with us today. Really appreciate you coming by and talking with us on Smarter Markets.

Maureen Downs: Well, thank you so much for having me. [Music]

Unlocking Global Potential: Three Reasons Regulated Exchanges on Four Continents Chose EP3 

Posted on by Connamara Technologies

When it comes to choosing an exchange platform and matching engine technology for global markets, the right technology partner can be a make-or-break decision for regulated exchanges. There are many factors to consider when choosing the right matching engine software and exchange platform provider for global markets. 

At Connamara Technologies, we understand your challenges when launching a global exchange from decades of experience. The following are reasons regulated exchanges across the globe have chosen EP3TM, our cutting-edge exchange platform.

The Global Appeal of EP3

In a world where financial markets are interconnected and technology is the lifeblood of exchanges, EP3 has been chosen by regulated exchanges across four continents — South America, the United States, Europe and Asia — for the following reasons:

1. Customization for Varied Needs

EP3 distinguishes itself through its robust customization capabilities, ensuring that exchanges can tailor the platform to suit your unique requirements. This customization extends to:

Versatile APIs, Microservices, and Cloud Integration: EP3’s extensive APIs and microservices provide exchanges with an expansive canvas for customization. Exchanges can leverage these tools to craft custom software, interfaces, and trading user experiences that align perfectly with their branding and workflows. Moreover, EP3’s cloud integration offers the agility needed to adapt to changing market dynamics.

Configurable Alerts: EP3 empowers exchanges to configure alerts for market surveillance, allowing them to fine-tune monitoring systems to their specific needs. This level of control is crucial in today’s dynamic trading environment.

Tailored Regulatory Reporting: Regulatory reporting requirements can vary significantly between jurisdictions. EP3 offers exchanges the flexibility to create custom reporting modules, ensuring seamless compliance with distinct regulatory mandates. Whether through Connamara’s Professional Services or in-house development teams, EP3 accommodates diverse regulatory landscapes.

2. Deep Expertise Across Markets

EP3’s global appeal is significantly enhanced by its profound expertise across a variety of markets. This expertise includes:

Benchmarking Excellence with U.S. Standards: U.S. markets set the gold standard for security, availability, disaster recovery, and market surveillance. Working with a company experienced in U.S. markets means working with the best of the best.

Regulatory Framework and Market Maturity: EP3 aligns itself with more mature markets, ensuring that exchanges can confidently navigate complex regulatory requirements. This alignment reduces regulatory risks and instills confidence in exchanges seeking stability and regulatory rigor.

3. Successful Global Operations

The third reason for EP3’s popularity lies in its adaptability to diverse markets, further enhancing its global appeal. EP3’s adaptability enables exchanges to operate efficiently in various market conditions, providing a seamless experience regardless of location or regulatory environment.

Operating in U.S. and global markets, Connamara understands the stringent regulatory standards set by entities like the CFTC. This expertise ensures that exchanges can navigate complex regulatory environments with confidence.

EP3’s adoption is not just about the platform itself but also the expertise that Connamara Technologies brings to the table. Here are some advantages of partnering with Connamara:

  • Cost-Effectiveness: EP3 offers cost-effective solutions compared to other enterprise alternatives, making it an attractive choice for exchanges with budget constraints.
  • Flexibility and Customization: EP3 provides flexibility and customization options through APIs and professional services, ensuring that exchanges’ specific needs are met.

Let’s Launch Your Exchange

Ready to explore how EP3 can transform your exchange operations? Contact us today to learn more about how EP3 and Connamara Technologies can get you to the first trade faster. 

Enhancing Your Exchange Experience: The Value of Professional and Support Services

Posted on by Connamara Technologies

Having access to robust professional and support services can make all the difference in the success of your matching engine and exchange platform. That’s why it’s important to choose a technology provider with robust professional and support offerings to help ensure your success at every stage on your path to the first trade. At Connamara, we offer a suite of services designed to elevate your exchange operations and provide unwavering support.

Professional Services: Extending Possibilities

For many exchanges and trade matching engines, the need to extend your platform for specific enhancements is inevitable — especially as the industry continues to evolve. It’s crucial to choose a technology provider who ensures you can bring on more participants and differentiate your exchange from the competition as you continue to grow.

One of the key aspects of our support offerings for EP3TM are our professional services. The integrations made by the team are tailor-made to extend your exchange platform’s capabilities and connect your exchange ecosystem. While some exchanges might leave these tasks to their clients, our team steps in to ensure that you can focus on your core business while we take care of the technical intricacies. This means that your exchange can be customized and optimized to meet your exact requirements, giving you a competitive edge, without the costs of building internally or conducting another lengthy vendor search.

Support Services: Your Lifeline

Unlike some competitors who merely offer ‘out-of-the-box’ solutions or generic consulting, Connamara provides dedicated engineering support with tailored Service Level Agreements (SLAs). 

Imagine having a team of experts by your side who not only understand the intricacies of the exchange technology but also have decades of experience in the field. That’s what Connamara’s support services offer — a lifeline to ensure your exchange and trade matching engine operates smoothly.

Here’s a breakdown of what you can expect from our support services:

  • Training and Documentation: We pair each of our customers with a dedicated technical account manager to  provide the training and documentation you need to operate and monitor your exchange effectively.
  • Ongoing Product Releases: We are continuously enhancing EP3 and its APIs, making them more performant and reliable. This means you’ll always have access to the latest tools and features to stay ahead in the market.
  • Tailored to Your Needs: Not all exchanges are the same. We consider variables like asset class, geography, deployment configuration, trading schedules and your technical staffing levels to customize our support to your unique requirements.

What Sets Connamara Apart

Our holistic approach to support and professional services is unmatched. While many competitors offer either off-the-shelf solutions or entirely bespoke consulting, we aim to strike the perfect balance. Our support team comprises the very people who built the system, giving you access to unparalleled expertise.

Here are a few scenarios where our expertise can make all the difference:

  • Performance Optimization: Connamara helps improve the performance of a customer’s exchange, ensuring a smoother trading experience for all users.
  • Integration Success: Our team facilitates integrations with multiple Independent Software Vendors (ISVs), expanding your exchange’s reach and accessibility.
  • Strong Partnerships: Connamara has built strong relationships with trading and clearing partners, accelerating critical conversations and collaborations.

Furthermore, we don’t outsource our support services. When you reach out for help, you’re speaking directly to the individuals who have been working with this technology since the start. This direct connection ensures that your questions are answered by experts who intimately understand the intricacies of your exchange.

Support When You Need It Most

The markets never sleep, and neither does our support. We are accessible 24/7/365, even during non-standard business hours. To ensure critical issues are addressed promptly, we have an escalation policy and controls in place, including the use of triaging tools that ensure we are always accessible. 

Connamara’s professional and support services aim to offer more than just technical assistance — we are your trusted partners in navigating the complex world of exchange operations. Contact us today to learn more about how we can help you get to the first trade faster.

Connamara Technologies Achieves SOC 2 Type II Certification

Posted on by Connamara Technologies

Connamara Technologies is pleased to announce that it has successfully completed the Service Organization Controls (SOC) 2 Type II certification created by the American Institute of Certified Public Accountants (AICPA). This certification demonstrates the company’s commitment to the highest standards of client confidentiality and information security with all of its policies, practices, and systems subjected to review. In collaboration with Vanta for continuous monitoring and Johanson Group for formal certification, Connamara demonstrated its scrupulous adherence to the highest standards for data security.

Achieving SOC 2 Type II certification marks a significant organizational milestone in the evolution of Connamara Technologies. SOC 2 is a cybersecurity compliance framework and a widely recognized and respected compliance standard for companies entrusted with sensitive data. Connamara Technologies’ successful certification provides enterprise customers and partners with enhanced confidence.  

“Many of our EP3 customers operate exchanges that are government regulated. Although Connamara Technologies is not a regulated entity, we wanted  to demonstrate  the same level of security controls, policies, and procedures that our customers must meet. The SOC 2 Type II certification allows us to show, on a yearly basis, that we do indeed meet the required levels of client confidentiality and information security,” remarked James Downs, Co-Founder and CEO of Connamara Technologies, upon certification. “We are committed to continually updating and enhancing our practices to keep this longstanding commitment to our customers.” 

The full SOC-2 Type II certification report is available upon request. Please reach out to a Connamara Technologies team member with any questions.

About SOC 2

SOC 2 is a component of the American Institute of CPAs‘ (AICPA) Service Organization Control reporting platform. SOC 2 reports assess and attest to an organization’s controls per AICPA’s 5 Trust Service Criteria: security, availability, processing integrity, confidentiality, and privacy. SOC 2 includes a technical audit and confirmation that comprehensive information security policies and procedures are documented and followed.

About Connamara Technologies:

Connamara Technologies builds future-ready exchange platforms and order-matching engines. It’s the company behind EP3, the advanced exchange platform, and order-matching engine incubated by Connamara Systems. Learn more: https://www.connamara.tech/company/

Contact

Connamara Technologies

Build or Buy? Making the Right Choice for Your Exchange Infrastructure Technology 

Posted on by Connamara Technologies

When it comes to launching an exchange or upgrading your technology as an existing exchange, exchange, many companies find themselves at a crossroads: should they invest time, resources, and expertise into building their exchange infrastructure from scratch, or should they take advantage of a ready-made solution? Let’s look at some of the factors worth considering when making the decision about the future of your exchange.

Building an Exchange from Scratch

Building an exchange from scratch can be an enticing prospect for companies that want complete ownership and control over their technology. In fact, some start-up exchanges believe that owning their infrastructure can enhance their ability to attract investors and differentiate themselves in the market. While building from scratch gives companies the freedom to customize every aspect of their exchange to align with their specific vision and business goals, they can often overlook the substantial time, expertise, and resources this approach requires.

Complex Challenges, Costly Solutions

Developing a robust and secure exchange infrastructure involves complex technical challenges, requiring expertise in areas such as architecture design, software development, and cybersecurity. Additionally, building means starting from ground zero, resulting in a lengthy development timeline. This can significantly delay your entry into the market, giving competitors using ready-made solutions a head start. 

Furthermore, we’ve found that companies tend to underestimate the ongoing maintenance and support required to keep the exchange operational and up to industry standards. The responsibility of keeping up with evolving regulatory requirements and addressing potential vulnerabilities lies solely on your shoulders, which can strain internal resources and divert attention from other critical aspects of the business, such as monetezation and customer acquisition.

Advantages of Using an Exchange Product like EP3™

When it comes to cost, time, and resource requirements, opting for an established exchange product offers significant advantages. A matching engine software product like EP3 allows you to bypass what can be a years-long development process and significantly accelerate your time-to-market and revenue realization.

Ready-made exchange products also minimize the need to hire a team of specialized business experts and engineering professionals. With a product like EP3, companies can tap into a wealth of existing knowledge and experience, freeing up resources to focus on their unique differentiators. More importantly, these products offer proven integrations with upstream and downstream service providers to simplify the complex web of interactions within the exchange ecosystem, ensuring smooth operations and reducing integration challenges.

Benefits of Modular Licensing 

While some companies may be tempted to build their exchange infrastructure to retain ownership of technology, exchange products can offer a compelling alternative. When looking for an exchange product, you can find one that ensures a fair balance between technology ownership and the support of a trusted vendor.

EP3 ensures a flexible and fair license agreement, that allows customers to pay only for what they need and add additional components as they grow. Connamara’s Discovery process provides detailed pricing and guidance that matches the exchanges tailored needs. This modular licensing structure means you only pay for the specific functionality and integrations your exchange requires, resulting in a more efficient and cost-effective path to market.

Focus on Features and Flexibility

A common concern associated with buying an exchange product is that the technology will not offer flexibility to customize your exchange when needed. When comparing exchange products, look for vendor partners that prioritize customer requests on their product roadmap and ensure that those enhancements align with your exchange business plan. Exchange products should offer APIs that empower exchanges to customize their offering and remain nimble in evolving market conditions. While Connamara provides in depth documentation that allows its customers to integrate, its Professional Services team can assist with development and integration as needed. 

The Choice Is Yours

Ultimately, the choice between building and buying depends on a number of factors, including business requirements, available resources, time constraints, and the trade-off between control and convenience. But if you’re looking to save time, money, and resources, with a market-proven product that provides you with flexibility, customization, and ongoing support while you focus on differentiators that bring liquidity to your market, an exchange product like EP3 can deliver.

Let’s Get Started

Whether you already have an order matching engine and need help optimizing your product, or you’re just getting started and need help figuring out your next steps, we’re here for you. Our Discovery process dives deep into your needs and provides you with a detailed roadmap for getting to the first trade for a fraction of the cost of a license.

Navigating the Exchange Platform Implementation Journey 

Posted on by Connamara Technologies

When establishing your exchange, the path from conception to production can be complex and challenging. Let’s explore the intricacies of an implementation process for an exchange platform, shedding light on the key stages and considerations for your journey to the first trade. 

Coordinating the Complex Ecosystem

The implementation process for an exchange is like orchestrating a symphony, where various players within a complex ecosystem must harmonize their efforts. Your exchange platform and matching engine software provider should understand the challenges of coordinating third-party agreements, technical ownership of exchange operations (including business continuity and disaster recovery procedures), and vendor selection. 

The Value of an Implementation Roadmap

An implementation roadmap, based on a comprehensive Discovery engagement, helps identify functional gaps and set up environments for testing early. At Connamara, our experience has shown us that this foundational approach sets the stage for successful implementation and beyond. That’s why our process emphasizes coordinating with you and multiple Independent Software Vendors (ISVs) — unique to your market and regulations — to form a roadmap that integrates your exchange ecosystem with EP3 to create an easy-to-use platform for the production launch.

Key Milestones on Your Journey

The implementation journey is marked by several key milestones that pave the way for a successful exchange launch. While the order of the steps can vary, your exchange provider should be well-versed in each of the following:

  • Vendor Selection: Establishing business relationships and streamlining onboarding.
  • Deployment: Swiftly launching the exchange platform to allow time for training and testing.
  • Training: Equipping the exchange operations team with the necessary skills and knowledge.
  • Integration: Connectivity with APIs and Independent Software Vendors (ISVs).
  • Custom Functionality: Adding bespoke features to meet unique requirements.
  • Testing: Iteratively evaluating and refining the environment.
  • Disaster Recovery: Preparing for unforeseen challenges and ensuring continuity.
  • Functional Acceptance: Confirming the environment’s readiness for production.
  • Demonstrations: Showcasing the exchange to regulators, investors, and market participants.

Common Challenges on the Implementation Path

During the exchange implementation process, you can encounter a range of challenges, from coordinating third-party agreements to meet go-to-market deadlines, ensuring all market functions and controls are in place and have been tested and demonstrated, and determining technical ownership of the exchange operation — from business continuity to disaster recovery procedures. This is why it’s crucial to have a team of seasoned experts on your side. 

At Connamara, our implementation process takes all potential challenges into consideration, working to eliminate issues before they arise. Backed by a team of engineers who have successfully navigated this path many times, our process allows you to focus on things like differentiating your exchange, adding value, attracting liquidity, and driving business growth.

A Tailored Approach

One size does not fit all in the world of exchange implementation. That’s why finding a trade matching engine provider that tailors its services to meet your unique needs and requirements is important. While some providers may have a fixed timeline and a “take it or leave it” attitude, at Connamara, we focus on customizing implementations and don’t consider the process complete until everything works seamlessly.

“The exchange implementation process involves many moving parts, which brings risk to an exchange’s production operation. At Connamara, our discovery process provides the needed confidence for a smooth and successful implementation phase. Our implementation process leverages confidence from discovery to work with our customers each step of the way toward their first trade,” said Matt Lane, Connamara’s Director of Professional Services.

Ongoing Support

Post-implementation support is crucial to your success. This is one of the big reasons an off-the-shelf option can fall short. You want your provider to include tailored support solutions, including around-the-clock engineering support when needed. You should have a direct line for assistance with engineers who actively work on the system, ensuring that critical infrastructure is maintained and operational.

Market Expertise Meets Engineering Excellence

The exchange implementation process involves many moving parts which bring risk to the exchange’s production operation. At Connamara Technologies, we have fine-tuned the approach to exchange implementation with EP3TM, offering a blend of market expertise and engineering prowess. We specialize in performance and optimization, software integrations, and connectivity so you can focus on what you do best — building better markets.

Contact us today to learn more about EP3, our implementation process, and how we can help you get to the first trade faster.

Driving Sustainable Solutions: Connamara Tech Joins Environmental Markets Association

Posted on by Connamara Technologies

We are excited to announce that Connamara Technology has joined the Environmental Markets Association (EMA). This membership highlights our dedication to creating innovative exchange platforms for environmental markets. 

As an EMA member, we’ll have the opportunity to engage with industry leaders in the evolving landscape of environmental markets such as carbon offsets, alternative energy trading, and other asset classes still yet to be created. This will help Connamara develop tailored solutions that effectively address the unique challenges faced by this industry.

About the Environmental Markets Association (EMA)

EMA functions as a dynamic hub for collaborative efforts, uniting diverse perspectives with a shared objective: the effective implementation of market-driven solutions to benefit our environment. 

With members that include environmental asset brokers, exchanges, large utilities, law firms, project developers, consultants, academics, NGOs and government agencies, EMA acts as a focal point for sharing expertise, facilitating knowledge transfer, and advocating for industry-wide progress.

Notably, EMA assumes the role of vigilant oversight, closely monitoring legislative and regulatory developments that impact these markets, thereby ensuring their adherence to high standards of environmental responsibility.

Transforming Insights into Innovation

With our proven track record of delivering EP3, an exchange matching engine and platform, for a variety of markets worldwide, the alignment with the EMA furthers our mission to open new cutting-edge markets and improve infrastructure for existing markets to evolve with the industry. 

At Connamara, our expertise lies in crafting scalable, dependable, and adaptable exchange platforms that empower marketplaces to operate their market with confidence and ease. With our EMA membership, we strengthen our ability to engage directly with market participants so that EP3 has up-to-date functionality, providing comprehensive solutions that align with the highest standards of market integrity within environmental markets.

“Connamara has always been a leader in developing new markets so it was an obvious decision for us to join the Environmental Markets Association given our prior experience with environmental market technology and evolution going on in the industry,” Connamara’s Head of Growth Dan Davis said.

Delivering an Environmental Market Advantage

By choosing Connamara Technologies as your exchange matching software provider, you get an ecosystem of expertise, collaboration, and thought leadership designed to foster your growth and success in environmental markets.

Learn more about EP3, our exchange platform technology and stay tuned as we harness the power of the EMA community to deliver solutions that foster your growth and set you up for success. 

Why an ‘Off the Shelf’ Exchange Solution Isn’t Enough

Posted on by Connamara Technologies

If ease of implementation and speed to market are priorities for your new exchange, an ‘off-the-shelf’ matching engine software solution can sound appealing. But it’s important to remember that not all ‘white label’ solutions are created equal as the definition is broad. While many solutions out there promise ease on the path to your first trade (in some cases just minutes!), the reality is far more complex.

Here’s what you need to know when choosing the right solution for your needs.

Customizing for Your Constituents

It’s crucial to choose a matching exchange software solution that provides your desired level of customization and flexibility. Some products may offer operators limited customization options, restricting branding and the ability to differentiate, while other products afford operators more discretion, but comes with fewer tools that have been proven in market. Whether it’s implementing specialized trading features, integrating unique components, or accommodating specific user preferences, the product you choose should match the level of customization your target audience, regulators, and growth targets require.

Build for the Buyer

Building a successful exchange is a multifaceted job that requires ongoing support and expert guidance, yet is meaningless unless the exchange is able to attract and retain liquidity of buyers and sellers on the exchange. While white label solutions provide a basic foundation, some may lack the professional services and support necessary to address complex technical issues and provide continuous improvements that will encourage a thriving marketplace. Without access to a team of engineers, developers, and support, exchange operators may find themselves unable to handle critical situations, security vulnerabilities, and tailor their market for sustained success.

Be Regulatory Ready

Depending on the industry, regulators may require controls, rules, or infrastructure provisions outside of the scope of technology that brands itself as being self-serve or SaaS (Software as a Service). EP3 customers like Tera Exchange require connections to unique vendors for their SEF approval, while other exchanges may have unique on-prem requirements. The decision to use SaaS or non-SaaS for all or parts of your exchange ecosystem depends on factors such as data security, regulatory requirements, and control over the exchange infrastructure. Exclusive access to your environment, hiring the right team, and utilizing the right tools to understand the health of the exchange are all incredibly important aspects of maintaining a fair, orderly, and compliant market. Components in EP3, like market surveillance, empower operators through features that allow for thorough monitoring and alerting.

Future-proof in the Present

The journey of an exchange doesn’t end with its launch; it’s just the beginning. As the market evolves and customer demands change, the exchange must adapt and scale accordingly. ‘Off-the-shelf’ solutions typically lack the flexibility to accommodate future needs and growth opportunities by not providing support, or professional services and there are often limitations in the product like the inability to add new asset classes, order types, or implement controls for impending regulation. Using a product that offers a layer of human support as Connamara Technology does can remedy many of these issues common with highly productized exchange solutions.

EP3 continues to grow and scale, implementing feedback from customers and extending its functionality and ease of use. A great example is our Jobs API, designed to eliminate a common headache for exchange operators and streamline the EP3 user experience.

Not Sure Where to Start? We Can Help.

By leveraging a platform like EP3, you get the best of both worlds — the proven functionality of an existing platform, with the customization, team, and resources you need to accelerate your time to market so you can focus on delivering an exceptional trading experience for your users.

Learn more about our discovery process and how we can help you get to the first trade faster.

3 Best Practices for Accelerating the Launch of Your Exchange 

Posted on by Connamara Technologies

Building an exchange order matching engine is a complex, time-consuming endeavor that can sometimes take years to complete. However, with the right strategies and tools in place, it is possible to significantly streamline the process and bring your exchange to life in a fraction of that time.

The following are practical strategies, tools, and best practices that can help expedite your time to market.

1. Assemble the Right Team 

Start by hiring the right team. To minimize time and resources required for your exchange development, you’ll want to prioritize hiring experienced analysts, operators, domain experts, and engineers who possess in-depth knowledge of the exchange industry. Their expertise will contribute significantly to streamlining the process and avoiding unnecessary setbacks. 

​​When hiring, consider the importance of daily monitoring and continuous improvement. Look for candidates who have a proven track record of effectively monitoring exchange operations, identifying bottlenecks, and implementing timely solutions. Some of the specific roles you’ll want to consider hiring for include an infrastructure lead, regulatory expert, customer support specialist, investor relations specialist, and a security expert.

Another critical factor in hiring is finding individuals who have a strong overlap of technology and financial experience. Look for professionals who understand both the technological aspects of building an exchange and the intricacies of the financial industry. This hybrid expertise allows for a deeper understanding of the specific requirements and challenges faced by exchanges, ensuring a more seamless integration of technology and financial functionalities.

Leveraging order matching engines like EP3TM can jump-start the effort by providing the essential tools to empower the people that are operating the exchange on a day-to-day basis. Tested and proven tools like EP3’s Admin UI, Jobs API, and Market Surveillance API give exchanges functionality to better operate, monitor, and scale their market. 

2. Understand Regulatory Requirements and Prioritize Security

Fully understanding the regulatory environment and its impact on your technology is vital. While online research will be helpful, ensure compliance from the outset to avoid delays and potential legal issues by working with a lawyer. Working closely with legal experts who specialize in the exchange industry can educate you on the process and ensure you meet all the necessary requirements and save you from potential pitfalls. You may consider bringing this in-house as you scale your exchange and depending on the regulatory requirements, but it’s likely you will always want a second opinion.

Compliance and security are paramount when building an exchange. You’ll want to ensure you’re Implementing robust security measures from the beginning to safeguard user data, funds, and transactions. The EP3 platform can be configured via the Market Surveillance API for a variety of alerts and reporting that allows for streamlined compliance and curated monitoring of your exchange 

3. Define Your Liquidity Strategy

Thoroughly research and understand where your exchange’s liquidity will come from. Identify the natural buyers and sellers in your target market, as this knowledge will enable you to design and implement effective strategies to attract them to a new way of doing business.

Avoid disintermediating parties that play a crucial role in driving liquidity to your exchange. Disrupting existing market dynamics without a clear alternative can impede the development and growth of your exchange. Exchanges often find success by augmenting markets to incentivize the sources of natural liquidity to change their trading behaviors. With clear incentives and guidance, exchanges are more likely to draw liquidity to their platform. By having this defined, the business will be able to tell a succinct story to its participants, partners, and investors — all key components of monetizing an exchange. 

Leveraging an order matching system like EP3 can jump-start your effort from the beginning by providing you with the essential tools and expertise you need to get to the first trade in record time. We’ll help streamline the technology and exchange building process so you can focus on differentiating your exchange, adding value, attracting liquidity, and driving business growth.

Many exchange entrepreneurs may have a brilliant idea but lack the necessary understanding of technology, security, and reliability required to operate an exchange. This knowledge gap can significantly slow down the process of getting to your first trade. That’s where we can help. 

Not sure where to start? Take advantage of our comprehensive discovery process.

Connamara Tech Joins the Association of Futures Markets, Expanding Industry Influence

Posted on by Connamara Technologies

We are thrilled to announce that Connamara Technology has recently become a member of the Association of Futures Markets (AFM). This strategic move marks an important milestone for Connamara, reaffirming our commitment to excellence in capital market trading technology solutions and matching engine technology. It also serves as a testament to our expertise and deep understanding of the evolving needs of the futures markets.

By aligning with the AFM, we will have the opportunity to further gain invaluable insights into the evolving needs of the futures markets, facilitating the development of tailored solutions that address the industry’s most pressing challenges. 

About the Association of Futures Markets (AFM)

The AFM is a not-for-profit global organization dedicated to fostering collaboration, promoting best practices, and advancing the development of futures markets. Comprising leading exchanges, clearinghouses, technology providers, and market participants, the AFM acts as a hub for thought leadership, knowledge sharing, and industry advocacy. Through regular conferences, working groups, and research initiatives, the AFM plays a pivotal role in shaping the future of the derivatives industry.

Harnessing Collective Intelligence to Drive Innovation

Given our strong track record in delivering cutting-edge technology solutions for global capital markets, our membership in the AFM is a natural fit. At Connamara, we specialize in developing scalable, reliable, and customizable exchange platforms and order matching engines that empower you to seize opportunities while managing risks. With our AFM membership, we further bolster our ability to provide comprehensive solutions that align with the highest standards of market integrity and compliance.

Additionally, our membership in the AFM allows us to collaborate with other like-minded organizations and contribute to the collective efforts of advancing the futures markets ecosystem. This will further enable us to leverage industry best practices and regulatory expertise, ensuring that our offerings always align with the highest standards of market integrity and compliance.

Pioneering Solutions for Your Market Advantage

In this era of rapid technological advancements, our partnership with AFM demonstrates our commitment to pushing the boundaries of innovation. By choosing Connamara and EP3TM as your matching exchange software provider, you gain access to an ecosystem of expertise, collaboration, and thought leadership, fostering your growth and success in the ever-evolving futures markets landscape.

Stay tuned as we continue to leverage this influential alliance to deliver groundbreaking solutions that empower you to achieve your goals.

Learn more about our trade matching engine technology.