Why You Should Reconsider Buying Exchange Technology From Exchanges
As a startup or company looking to launch or modernize a trading venue, one common mistake may be buying your exchange technology directly from a large-scale legacy exchange. Established exchanges may dazzle prospective customers with sleek web design, countless products, brand recognition, and ambitious promises of high-level service. But this shortcut often comes with hidden and costly drawbacks. Chief among these is the fact that you may be buying services and products straight from a future competitor.
At Connamara, we’ve spent over 25 years building client-first, neutral, and modular exchange technology for a wide range of markets: equities, derivatives, futures, crypto, prediction markets, and beyond. We’ve also witnessed how vertically integrated exchange vendors often stifle innovation and put their own interests first. Here’s why you should think twice before choosing your tech stack from an exchange, and what to consider instead.
Conflict of Interest
When your tech provider is a name-brand exchange with brick-and-mortar offices and custom letterhead stationery at every cubicle, it behooves those exchanges to never help you outperform them. That’s because they have two conflicting priorities: running and growing their own exchange and supporting (not necessarily growing) yours. By disincentivizing all the things that make your startup great (growth, experimentation, agility, cutting-edge ideas), a power imbalance emerges.
- Customers are frequently second in line for new features, updates, and support.
- Your platform’s needs become secondary to their internal agenda.
- Your licensing fees may help to subsidize their market dominance.
Hand-Me-Down Tech
In some cases, exchange technology sold by legacy exchanges is not their cutting-edge infrastructure. They sometimes offer stripped-down, older versions of their products, while quietly developing exciting technology (that they keep for themselves). Customers may find themselves locked into:
- Limited flexibility and no way to pivot
- No customization or adaptability
- Outdated APIs
- Costly upgrade packages
- Behind the times on support for new asset classes
The Benefits of Vendor Neutrality
Speaking about ourselves, Connamara Technologies’ sole focus is building exceptional, modern, and reliable exchange platforms using our EP3® technology. We don’t run a market. We don’t compete with you. And we’re not repackaging legacy tech to squeeze out license revenue. That neutrality means:
- Transparency, not agenda-driven priorities.
- An innovation partner invested in your success from day one.
- Modern infrastructure, designed for performance, resilience, and agility.
In 2024, two new EP3-powered derivatives exchanges and a clearinghouse received U.S. regulatory approval. And so far in 2025, two more exchanges have gained regulatory approval. Even more are in the pipeline, demonstrating market confidence in neutral, client-focused technology.
The EP3 Advantage
EP3 by Connamara Technologies is a fully integrated, end-to-end exchange and clearing infrastructure platform that supports rapid, cost-effective launch and operation of new trading venues. EP3 includes critical components such as:
- Matching Engine
- Clearing and settlement
- Market surveillance and reporting
- Risk management
- Administration and market access
EP3 is cloud-native, modular, and asset-agnostic, designed for a broad spectrum of asset classes and trading models, from crypto to carbon credits, derivatives to predictions. We allow clients to license only the components they need, providing cost control and scalability. Deployment options include cloud, on-premise, or hybrid, tailored to regulatory and operational needs.
Don’t Fall Into The Exchange Technology Trap
The next wave of financial innovation is unlikely to come from incumbent exchanges. It will come from bold, independent operators building smarter, faster, and more responsive venues. If you’re serious about controlling your infrastructure and your company’s future, choose a partner that’s committed to your success, not theirs.
Let’s talk about how EP3 can give your market a competitive edge, without the legacy compromise.