Big Data is a trendy new catch phrase in business and has sky rocketed to critical mass in 2012. Google Trends indicates there has been an explosion in search terms such as big data analytics. The Big Data rocket is a bomb that explodes neatly to deliver next-generation business value. Big Data represents a formidable force in business today. Gartner expects big data to reach $34 billion in 2013 IT spend.
For the financial industry a few key factors distinguish big data from any other industry. To derive true business significance, it’s important to understand it centers on time-sensitive data quality. Extracting business benefit from large data sets in a timely manner is for trade-related decision management including econometric trade modeling, risk and cost analysis. Determining accurate measurements highlights the extent of large data sets, inclusive of structured tick data from disparate sources and across asset classes and the related reference information. Steve Hamby, CTO from Orbis Technologies describes the Five C’s of Big Data. The most unique and relevant to finance is Celerity referring to the high rate at which data is consumed, and it’s time-sensitive relevance to business decisions. The critical importance of strategy decision time is immediacy of pricing data often from multiple sources where books need to be consolidated and possibly currency converted. Likewise, the creation of accurate and reliable price analytics for measuring trade performance otherwise known as transaction cost analysis (TCA) – average trade price, VWAP, and arrival price are only possible with high-quality data scrubbed clean by applied corporate actions, cancelations and corrections. The ability to accurately derive benchmark prices at the precise time of trade execution is a cornerstone for understanding trade performance.
Another of the C’s Steve mentions is Confidence. Firms demand confidence in the resulting analytics derived from big data… those used in determining the profitability profile of new models, measuring trade performance and analyzing portfolio risk. For this firms depend on precise, clean market data across all their tradable markets and an accurate recording of order history.
OneMarketData was recently named Best Big Data Provider at the Buy-Side Technology awards 2012 for it’s OneTick product. OneTick is an enterprise solution capable of capturing, storing and analyzing big data across any asset class, derived analytic or news event, even the massive Options OPRA feed, that 4 million message per second fire hose. OneTick is a focused solution for financial big data providing the scalable database, the analytics functions and user tools to uncover the narrative in the big data dump. The ability to tell a story with the data is what elevates it over raw hardware storage and computational power. The story is germane to an industry and creates relevance and monetizes the data for a business. Mark Beyer, research vice president at Gartner states, ”despite the hype, big data is not a distinct, stand-alone market, it but represents an industry-wide market force which must be addressed in products, practices and solution delivery”. Business is not aiming for do-it-yourself (DIY) big data solutions. Firms don’t want to be pioneers with vendors either, the competitive pressures demand fit-for-purpose solutions for both buy-side and sell-side firms alike. OneTick delivers on that story as many of the OneMarketData customers have already discovered. Yet the ideal case is to view historical activity and real-time as a single time continuum. What happened yesterday, last week or last year is simply as extension of what is occurring today and what may occur in the future. This is where the melding of time series ‘tick’ database and complex event processing (CEP) coupled with the focused financial analytics create a differentiating story.
Across the world’s financial centers countless firms ranging from marketplace data providers like SIX Financial, sell side institutions like Société Générale, Invesco Asset Management and quantitative trading firms like Tyler Capital have recognized the broad and in-depth value of OneTick. Whether researching market microstructure or trade performance, devising new quantitative trade models across the varied landscape of today’s cross border/cross asset environment or working in the different aspects of high-frequency, stochastic and fragmented markets, OneTick is the complete solution for optimizing trading decisions and discovering that diamond from within the big data mountain.
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