Using the cloud to reduce complexity and lower costs for accessing and analyzing tick data

It’s easy to talk about utilizing market data to improve your business, but the mechanics of actually acquiring high quality, normalized, cleansed data in the format that you need have always posed a significant challenge – in human capital, IT infrastructure and managing a vast array of sources.

OneTickCloud takes the headaches out of sourcing tick data. In addition to lowering your costs, it increases your team’s decision-making effectiveness from the IT staff to quantitative analysts so they can focus on doing their real job – like backtesting trading algorithms, multi-factor model development, portfolio analysis, pre- and post-trade analysis, and TCA. On top of that, OneTickCloud provides a range of custom analytics tools from straightforward queries you can build in seconds from our web interface to complex, multi-dimensional queries utilizing the full power of OneTick analytics.

In this upcoming webinar, I will show you how OneMarketData’s expert data team has built a hosted cloud platform of cleansed, normalized market data from a variety of market centers and geographies all offered through our secure, high performance cloud platform. I will demonstrate how easy it is to build queries using our web-deployed user interface, and then how to invoke those queries for scheduled or immediate download.

OneTickCloud is an easy, fast, and cost-effective way to gain on-demand access to vast amounts of clean tick history and analytics using a zero footprint client. For more demanding analytical sophistication, the tools are available in the complete OneTick time-series tick database engine and query language.

Register Now: http://bit.ly/1d35Qf4
WEBINAR DETAILS
DATE: Tuesday, June 9
TIME: 10:30AM New York / 3:30PM London

Once again thanks for reading.
Louis Lovas

For an occasional opinion orcommentary on technology in Capital Markets you can follow me on  twitter, here.

 

Posted in Algorithmic Trading, Analytics, Big Data, Cloud Computing, Complex Event Processing, Equities, Foreign Exchange, Futures and Options, High Frequency Trading, OneMarketData, OneQuantData, OneTick, Tick database, Transaction Cost Analysis | Leave a comment

OneTickCLOUD, Managed Services across Global Markets

The seduction of low-cost yet massive compute power creates overwhelming interest in cloud technology. Momentum is building fast within the trading and investment business to benefit from the $18B cloud computing industry.  In a survey conducted by OneMarketData respondents overwhelmingly look to avail themselves of all that cloud offers.  Over 77 percent expect to jump headlong into cloud platforms. The allure of cloud computing is lower technology costs and improved profitability that comes from the enhanced capabilities enabled by greater compute power and access to a store house of deep market history. Quant research for alpha discovery, algo development and back-testing are all augmented by what the cloud can immediately dish up.

A key characteristic of the cloud is rapid elasticity which offers scalable compute power and voluminous storage providing immediate access to deep market history. Such pay-as-you-go scalability defines a new archetype for the front-office trade lifecycle chain.

OneMarketData has recognized this technological shift to embrace cloud computing. For that, the launch of the new OneTickCLOUD™ is now on-line.

OneTickCLOUD is a securely-hosted managed data and analytics service supporting global equities and futures tick history, reference data, and adjustment factors. It offers a suite of pre-defined analytics and tooling for your own custom personalized analytics.  Web access is on-demand for flexible and convenient access when you want it.

OneTickCLOUD enables users to focus exclusively on their analytics and eliminate the challenges associated with data collection, alignment and extraction.  No local hardware, software or data licenses are necessary. You have immediate access to 5 years of tick history, 20 years of end-of-day along with real time collection from US Equities and Futures markets. Outside the US over 10 years of tick data is available from over 120 global markets, including market depth.

Knowing a one-size does not fit all, OneTickCLOUD offers personalized access to suite your requirements for content and analytics. The tree-tiered offering is outlined in this Product Matrix.

A move towards cloud signals a fundamental shift in how we handle information. Financial firms will move first with data-heavy decision-support functions – model back-testing, quantitative research and transaction cost analysis. The days of cloud-as-a-fad are over. It’s a game-changer promising a major paradigm shift in business initiatives with its vast computational power, storage and a wide variety of application solutions at a lower cost structure. OneTickCLOUD delivers on that promise.

Once again thanks for reading.
Louis Lovas

For an occasional opinion or commentary on technology in Capital Markets you can follow me on  twitter, here.

Posted in Algorithmic Trading, Analytics, Big Data, Cloud Computing, Complex Event Processing, Equities, Foreign Exchange, OneMarketData, OneTick, Tick database | Tagged , , , | Leave a comment

Social Sandbox – Where Social Media Meets Market Data

In today’s information age, we often take for granted that breaking news from across the globe will be delivered to our doorstep in an instant. The evolution of the internet has replaced radio, television and print journalism as the primary information source. With social media we have come to expect and often rely on economic, political and market news to be colored by views and personal perspectives. This creates far reaching influence that has touched our personal and professional lives. A decade ago, I doubt anyone would have predicted that businesses the likes of LinkedIn, Facebook and Twitter would top the IPO market. Yet here we are.

With the chatter on Twitter, Facebook and other social media outlets reaching peak levels it makes you wonder just how strongly social media is proving to impact financial markets. OneMarketData has just released a product that allows market participants the opportunity to find out for themselves.

In conjunction with Datawatch and Social Market Analytics, OneMarketData presents the Social Sandbox a hosted solution to empower quants and traders to research and measure the value of social media sentiment against market activity. It can be used to discover correlations and patterns using a wide range of analytics against global equity data and social sentiment scores. The pre-built solution is powered by OneTick, the leading platform for time-series analytics and storage.

The Social Sandbox is the very first platform which integrates deep market history and analytics to measure the impact of social media. Such analysis requires the alignment and integration of exchange and reference data, in addition to the social sentiment indicators. The platform offers a set of sentiment studies including “Top Score by Social Sentiment,” “Sentiment to Market benchmarks,” (e.g. Open, Returns, etc.), a Portfolio Study and many others.

The advantages to improve your trading performance include:

  • Evaluate social media signals and determine a fit within your investment or trading strategy
  • Use studies to identify relationships between score characteristics and returns over custom time periods
  • Create custom indicator calculations such as beta, momentum, earnings growth, historical volatility, and average daily volume
  • Conduct discriminating Portfolio Performance and Valuation Analysis
  • Perform comprehensive Quant Research, Strategy Development and thorough back-testing through bull/bear and other market-impacting conditions all from the same OneTick platform

The Information Transformation

We are in the midst of a revolutionary change in global news dissemination and consumption through social media. One so subtle we can hardly see the change happening before our very eyes. The technology driving this is an ever evolving proposition, what we know today will be replaced with something new in the future – history tells us that. Social media, especially Twitter, transcends the old news agency reporting model. It renders artistic license to portray individual opinions, perspectives and commentary on events across the globe.  OneMarketData’s Social Sandbox provides the utility, convenience and in depth analytics to stay ahead of the curve to improve your investment performance.

Once again thanks for reading.
Louis Lovas

For an occasional opinion or commentary on technology in Capital Markets you can follow me on  twitter, here.

Posted in Algorithmic Trading, Analytics, Big Data, Complex Event Processing, Equities, Foreign Exchange, Futures and Options, High Frequency Trading, OneMarketData, OneQuantData, OneTick, Tick database, Transaction Cost Analysis | Leave a comment

Time Advantage to Analytical Inquiry, the value of Visual Data Discovery

How much time do you need to receive, analyse and respond to market events in today’s world of fragmented liquidity?

Even if you have the fastest links to exchanges and dark pools, precious time is not taken in data delivery, but in data analytics. Of critical importance to strategy decision time is immediacy of pricing analytics whether from single or multiple sources.

In the trading world, understanding data is a game changer. Firms are awash in data across a market structure fragmented intdozens of sources and data types. In the Equities markets there are 13 major exchanges in the U.S. alone and 20 across Europe and Asia providing trades and book depth. True price discovery… volume and trading patterns can only be achieved by analysis across markets. That old saying, the whole is greater than the sum of the parts fits well in this case.  And of course the importance is to find trading opportunities. That is in the immediacy of pricing data… time is of the essence.

By dramatically reducing the time to understanding, we provide a time advantage to spread trading, pairs, reversion, smart routing and risk analysis. Increasing algo sophistication implies more calculations and more analysis – in realtime. This should not be diametrically opposed to latency goals.

Analysis is not just about the here and now and the blending of multiple venues but also understanding the past. History is how we got to now, time is just a continuum.  Data analysis reveals unique observations and patterns and the possibility for predicting future values. Only by comparing current values to past activity can it determine unusual behaviour, or market abnormalities. Monitoring raw market data may show us the prices, history gives us benchmarks.

So given that basic problem scope, you can divide the solutions into 3 domains; managing scale for data capture and storage; analytics and visualization.  Of course they are not mutually exclusive but highly intertwined.

For high precision market analytics to derive real business value it requires enterprise an data management platform able to deliver capture and query performance… and data quality – to ensure prices reflect cancels, corrections, splits and dividends and symbologies across markets. And the data architecture must be able to easily conflate order books across markets – this is critical to the discovery process.

The third is visualization… fashioning analytical metrics into a human readable format. Visual display across deep time allows users to see things they were not aware of. It can simplify comprehension of data and promote understanding.

The terabyte volumes of market data and order activity can be easily consumed and processed by high-speed data management and analytics. However, the single easiest way for our brains to interpret large amounts of information, communicate trends and identify anomalies is to create visualizations against the distilled, filtered and smoothed content.

This webinar recording demonstrates that by looking at the U.S. Equity Markets across all major venues, calculating metrics based on market behavior, and visually analyzing trading abnormalities such as order book imbalance.

The right analytical content at right time to the right people creates the competitive advantage everyone seeks.

Once again thanks for reading.
Louis Lovas

For an occasional opinion or commentary on technology in Capital Markets you can follow me on  twitter, here.

Posted in Algorithmic Trading, Analytics, Big Data, Complex Event Processing, Equities, Foreign Exchange, Futures and Options, OneMarketData, OneQuantData, OneTick, Tick database, Transaction Cost Analysis | Leave a comment

Industry Survey, Momentum Builds for Cloud Services across Capital Markets

What is it about cloud computing that causes such a disturbance in the force?  The seduction of low-cost yet massive compute power creates overwhelming interest. Yet fears of a too-good-to-be-true offer create an emotional tug-of-war not for the faint hearted.

Momentum is building fast within the trading and investment business to benefit from the $18B cloud computing industry.  In a recent OneMarketData survey, respondents overwhelmingly look to avail themselves of all that cloud offers.  Over 77 percent expect to jump headlong into public and/or private cloud platforms in 2014. A weighty figure, made even more significant against the backdrop of current usage – disappointingly low.

Yet, despite its perceived benefits the capital markets industry has been slow to adopt cloud services or decide what, if any trading-related functions to migrate to a cloud platform. That is changing as market participants look to find alpha anywhere they can. The allure of cloud computing is lower technology costs and improved profitability that comes from more in-depth algo testing.

A key characteristic of the cloud is rapid elasticity which offers self-service scalable compute power unheard of prior to cloud technology. Such pay-as-you-go scalability defines a new archetype for large scale model back-testing. The increasing importance of software testing is a major focus in the post Knight Capital era. 63 percent of the survey respondents picked it as the primary solution for the cloud.

Yet with all the fervor toward increased adoption, there are still barriers ahead. Financial firms face the same angst as any commercial entity – navigating the risks of externalizing infrastructures and the inherent loss of control in doing so. But the technology-heavy trading and investment business invite unique challenges to cloud platforms not so easily solved – performance for one.

Performance has a direct impact on profitability for all market participants, not just High-Frequency Traders (HFT). Processing speed has an immediate impact on trade decisions and increasing algo sophistication implies more calculations, more analysis and more processing time. This should not be diametrically opposed to latency
goals. Fast processing time offers advantages to spread trading, pairs, reversion, smart routing and risk analysis. And is the difference between winning and being just another also-ran.

A move towards cloud signals a fundamental shift in how we handle information. Financial firms will move first with data-heavy decision-support functions – model back-testing, quantitative research and transaction cost analysis. The days of cloud-as-a-fad are over. It’s a game-changer creating a major paradigm shift in business initiatives with its vast computational power, storage and a wide variety of application solutions at a lower cost structure.

Click here for the survey report on the cloud computing trends in capital markets.

Once again thanks for reading.
Louis Lovas

For an occasional opinion or commentary on technology in Capital Markets you can follow me on  twitter, here.

Posted in Algorithmic Trading, Analytics, Big Data, Complex Event Processing, Equities, Foreign Exchange, Futures and Options, HFT, High Frequency Trading, OneMarketData, OneTick, Tick database, Transaction Cost Analysis | Leave a comment

Are Cloud Services Emerging as a Key Factor in Global Markets Trading?

Cloud computing, it means a lot of different things to different people and is one of the most over hyped technologies in all of computerdom.  There are public, private, hybrid, infrastructure, software and platform oriented cloud solutions. Crafty software vendors masquerade as cloud solutions, but having a hosted app in rack-mounted hardware for a monthly fee does not constitute a cloud based solution.  Gartner has identified no less than thirty-seven cloud-based services and technologies in their 2012 Hype Cycle (see diagram). It’s no wonder Cloud evokes a mind numbing analysis paralysis once you dig below the surface.

Yet momentum builds. According to researcher International Data Corporation (IDC), the cloud-enabled Software as a Service (SaaS) market grew 26 percent to become an $18B market in 2012. Cloud infrastructure deployment is predicted to grow to $11 billion by the end of next year.  Cloud services are creating a major paradigm shift in business initiatives and IT technology as it offers the potential to leverage vast computational power, storage and a wide variety of application solutions. The choices, pros and cons abound as the financial services industry examines private and public clouds, cost factors, solution alternatives and in the impact on existing business models.  As for a definition, this one holds up pretty well.

Cloud computing is a model for enabling convenient, on-demand network access to a shared pool of configurable computing resources (e.g., networks, servers, storage, applications, and services) that can be rapidly provisioned and released with minimal management effort or service provider interaction.

Despite its perceived benefits the capital markets industry has been slow to adopt cloud services or decide what, if any trading-related functions to migrate to a cloud platform. Yet the motivation is mounting, or it seems to be… Market participants are witnessing a new normal defined by thinning margins, increasing competition and diminishing volumes. Extracting alpha out of a dwindling pot has been their raison d’être. The desire to capture alpha anywhere it can be found has caused the uptick in transaction cost analysis (TCA) cost controls, intensified strategy back-testing and cross asset, cross border trading.

Rik Turner from the research firm Ovum recently published a progress report on cloud adoption siting increases have occurred due to improvements in security and overall cost-consciousness. But there is a bewildering array of cloud attributes, many that present challenges to market participants and due diligence is necessary to understand them. The business functions of trading and asset management center on data management. Cloud injects complications for data ownership, entitlements, security, compliance and regulatory policies.

A key characteristic of the cloud is rapid elasticity which offers compute power unheard of prior to cloud technology. Such on demand scalability defines a new archetype for large scale model back-testing. The increasing importance of software testing for both profitability and robustness is a major focus in the post Knight Capital era. The cloud’s pay-per-use access to hundreds even thousands of CPU cores affords in depth testing and optimization techniques that where once impractical.

A move towards cloud signals a fundamental shift in how we handle information, yet at what cost?  This is where OneMarketData, the makers of OneTick, a time-series tick database and Complex Event Process (CEP) technology are asking market participants to weigh-in. We have put together a short questionnaire to solicit industry input on cloud computing. Is it a fad or a game-changer?

Click here for the survey on the cloud computing trends in capital markets.

Once again thanks for reading.
Louis Lovas

For an occasional opinion or commentary on technology in Capital Markets you can follow me on  twitter, here.

 

Posted in Algorithmic Trading, Analytics, Big Data, Complex Event Processing, Equities, Foreign Exchange, Futures and Options, OneTick, Tick database | 1 Comment

Information Delivery Finds its Mark in Social Media

In today’s information age, we often take for granted that breaking news stories from across the globe will be delivered to our doorstep in an instant. We have come to expect a deluge of information from radio, television, newspapers and social media to provide not just journalistic coverage of political, business and society’s notable events but also a diversity of viewpoints in social commentary and opinions from the multitudes.

But this was not always the case. It began in the early part of the twentieth century where the machinery of information began to change the rules. Major events from the sinking of the Titanic to Lindbergh’s crossing of the Atlantic catapulted the “information hunger” to titanic proportions.  Marconi’s telegraph and the rotary press, which made possible continuous printing, were game changers delivering breaking news on the calamitous and the momentous.  These technical innovations not only fed the insatiable frenzy for information they created it, which has led to the familiar face on the evening news and the paparazzi.

Wind the clock ahead to present day and the narrative behind information delivery has found its mark in social media.  The information flow from social networks such as Twitter, Facebook, Blogs and many others  not only show trending topics but very often deep insight from the minds of experts and the experienced on a specific business, market trends and products or services. This represents a significant paradigm shift in information’s delivery, consumption and value. While social media can be more noise than signal, the modern enterprise now views twitter as a strategic weapon, a tool for predictive insight to feed business objectives from customer satisfaction to product refinements.

The Hash Crash can be defined as an inflection point, motivating a “sit up and take notice” attitude towards social media among financial market participants – how much influence does social media have over the markets and what value lies within to derive alpha?

OneMarketData’s Social Media survey looks to answer that and many other related questions on using social media as the fodder for predictive analysis.

Social Media Survey Takeaways

The twenty-question survey reveals attitudes towards social media ranging from fear and uncertainty to a belief in the untapped potential.

  • Traditional news sources take a back seat to social media outlets for news and information delivery. And while the journalistic narrative may be the breaking scoop, just as important to the story is the meaning behind the story as expressed in the vast collection of commentary and opinions.
  • Social media has reached widespread use as a vehicle for conveying news, information and insight. But on the flip side – accepting social media as a credible, reliable source of actionable information has not happened. Within the financial industry there is still a skepticism that social media is more noise than signal – the fear of false positives and security breaches looms large. The Hash Crash was only the first major breach, itself a predictor of future malicious hacks.
  • Yet, there is also acceptance of the inevitable – the information flow of social media does influence financial markets. And it will catapult efforts to leverage this data source for actionable insight for incorporation into trade model design, back-testing, optimization and benchmarks. Increased competition, thinning margins and risk concerns will drive a think-out-of-the-box attitude towards social media.  But by and large the challenge is distilling content into sentiment indicators through text pattern analysis of positive and negative commentary. This will take shape in the analysis of captured history and real-time consumption of the social media information flow advancing data management and complex event processing (CEP) technologies.

The Future of Regulatory Oversight

As social media becomes more accepted as a tool in our marketplace regulators will be watching closely. That began with the Securities and Exchange Commission’s (SEC) endorsement of the use of social media outlets to distribute material, non-public corporate information. Somewhat embarrassingly and an unlikely coincidence for the Securities Exchange Commission, the Hash Crash occurred just three weeks later. This malevolent breach of a trusted new source was notoriously bold but is also the catalyst for social media outlets to tighten security. Safeguarding the information flow is tantamount to its credibility, a obvious indication that social media outlets will be increasingly driven to regulate themselves, monitoring usage and potential abuse.

Yet, influential market participants seeking the spot light have clearly proved social media will be under increased regulatory scrutiny in the coming years. It’s not so much that highly regarded authoritative figures like Carl Icahn post tweets announcing their position in a high profile business such as Apple. It’s a matter of who’s listening. The sheer number of social media consumers, each with their own voice defines much greater market-moving potential than anything else ever done in the past – something Marconi himself could have never imagined.

The survey report can be downloaded here.
A video Interview on TABB Forum is available here.

Once again thanks for reading.
Louis Lovas

For an occasional opinion or commentary on technology in Capital Markets you can follow me on  twitter, here.

Posted in Algorithmic Trading, Analytics, Big Data, Complex Event Processing, Equities, Foreign Exchange, HFT Regulation, OneMarketData, OneQuantData, OneTick, Tick database | Leave a comment