In a recent survey conducted by The Association of National Exchanges Members of India (ANMI), consisting of over 900 exchange brokers and members, it has been revealed that 82.3 percent of Indian stockbrokers are planning to invest in cybersecurity measures to bolster the resilience of their businesses against cyber threats.
The survey, which focused on technological trends in the stock brokering industry and the level of technology penetration in the capital markets, also disclosed 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, urging stockbrokers to allocate a 20 percent increase in technology expenditure in 2023.
The transition from physical to digital operations was evident, with 25–50 percent of business operations shifting to digital platforms. Notably, the findings also showcased a growing inclination among stockbrokers towards cutting-edge technologies such as algorithmic trading and artificial intelligence (AI).
Algorithmic trading has witnessed a surging popularity among stock brokers in recent times. Stock brokers are increasingly shifting focus on technology-based algorithms to enhance customer experience, the survey showed.
Moreover, the survey revealed that with the ongoing digitisation of business operations, there is a sustained demand for IT professionals, prompting substantial investments in technology. Notably, a substantial 71.1 percent of the participants are contemplating expanding their workforce or recruiting new talent to reinforce their IT teams.
V S Sundaresan, Executive Director of SEBI, acknowledged the transformative power of technology and emphasised 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 driven by API-based brokerage firms. He mentioned, "The popularity of algorithmic trading is increasing day by day, and there is 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."
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