Legacy Technology Costs and Modernization Challenges in Capital Markets

Capital markets firms clinging to outdated technology face mounting implicit costs, warns Deepak Dhayatker, CTO at Rapid Addition. Systems built in the early 2000s struggle to meet today's demands, constrained by rigid architectures that can't adapt to modern infrastructure, networking, or data center environments.

"Maintenance costs are just the tip of the iceberg," Dhayatker told Markets Media. The real penalty comes from missed opportunities—companies burdened by legacy tech MOVE too slowly to capitalize on market shifts or counter disruptive competitors.

While technology obsolescence is inevitable, newer cloud-based systems with open architectures promise easier future upgrades. Wedbush Securities recently demonstrated this advantage by overhauling its trading infrastructure for multi-asset class efficiency.