Quality Real-Time Data - Wettbewerbsvorteil durch Datenbankanalytics

QUALITY REAL-TIME DATA Having timely information is not simply a competitive advantage. It is a survival necessity in a highly competitive global environment. The Race Against Time The post-crisis trading environment has industry pundits decrying many issues that have global implications, including cross-border risk management, ill-conceived approaches to market oversight and U.S. markets ceding valuable competitive ground. But at the heart of all the arguments swirling around Wall Street, Main Street and Pennsylvania Avenue is one irreducible point: time. More so than at any other point in history, time is the friend and enemy of capital markets. And nowhere is the brute force of time playing out with more intensity than in the furious pursuit of quality real-time data in today’s high-performance trading environments. Managing the Data Deluge Before organizations can fully address the performance challenges of real-time data access and analytics, they must address the quality and volume of the data to be analyzed. But the sheer Dr. Raj Nathan volume and persistent incongruity of formats Executive Vice President, and sources severely complicate the task of Chief Marketing Officer, aggregating and structuring that data. Sybase, an SAP Company CAPITAL MARKETS GUIDE I 85 A complement to market The uniquely complex ecosystem of expanding capabilities and data, event data provides shifting alliances that define a comprehensive view of this arena is the focus of attention on the following pages. The current world events. authors of these articles look at several constituent parts of the real-time data ecosystem Beyond the data deluge itself, a host of factors with a view to how these parts complicate the rush to greater feeds and higher are shaping today’s active capital speeds. The escalating hunt for quality real-time markets world. data is happening at the same time that other essential parts of the trading data/IT landscape Reimagining Data… are transforming themselves. Among the most After decades of resistance, the important of these transformations: silo’s era seems to be entering the endgame. This places I More Wall Street trading activity than ever is enormous attention on data moving from public markets to private exchanges, extraction and execution from where co-location and other factors fuel competi- operational and outside sources tive access to real-time data. The NYSE currently not historically seen as integral handles roughly 25 percent of all trading on its to the front office P&L. The own listed stocks, compared with 80 percent just existence of unstructured or six years ago. At least three dozen off-exchange semistructured data calls for venues have emerged in the last several years. reimagining traditional relation- I Hardware acceleration and other technology ships between formerly disparate advances, under way well before the financial parts of the enterprise. crisis, are pushing feeds and associated analytics to the limits of physics, testing how much faster This chapter also examines electrons—and therefore trading orders—can event data and its role in trading move through the wire. strategies. A complement to I The evolution of complex event processing (CEP) market data, event data provides over the last several years from nascent trend to a comprehensive view of current a fact of life has had substantial implications not world events. Using the very only for the trading life cycle, but for the vendor latest computing technology to community as well. evaluate and trade upon event I And there is the quest for smarter, faster, event- data has the potential to impact driven analytics through unlimited access to growing the capital markets in a material pools of structured and unstructured data. and time-saving way. 86 I SYBASE 2011 QUALITY REAL-TIME DATA …and Putting It to Work Time will in New Ways wait for The rapid ascent of high-frequency and electronic trading, as well as no one. competition for alpha, continues to drive hedge funds, proprietary trading firms and other asset be consistently employed in real time. High- managers to identify new, performance analytics databases will share an increasing differentiated data sets as core amount of infrastructure with CEP technology. This contributing factors in their chapter explores how such sharing increases efficiency real-time trading models. Firms by analyzing data as it streams and before it is stored. hoping to prevail in today’s markets are turning to new real-time From visualization tools to frameworks, new content sets. These reside outside instruments are emerging to help both professional of classic market data paradigms, developers and end users save time by rapidly and firms are embracing them developing and deploying analytics applications. as sources of competitive This chapter also discusses a new analytics differentiation. programming language that does just that. Event data has crystallized as The imperatives of delivering and analyzing real- the leading real-time ingredient time data at unprecedented speeds and volumes that firms are evaluating— drive much of today’s capital markets agenda, in and increasingly adopting. ways both manifest and as yet unrecognized. This The emergence of event-driven is the time when the industry will determine just models and trading strategies how quickly a trade can execute—and how best is a particularly strong play for to harness that for competitive advantages. quant-focused firms, which tend to be well versed in rapidly Amid the many questions—and opportunities— absorbing and integrating data these new technologies raise, one thing is certain: into their trading strategies in Time will wait for no one. real or near real time. As executive vice president and chief marketing officer The maturing of CEP, the of Worldwide Marketing and Business Solutions topic of another article here, Operations, Dr. Raj Nathan is responsible for all reflects the widely recognized marketing initiatives for Sybase. Under his leadership, importance of identifying event Sybase is recognized for visionary technologies that patterns and abstracting them in are helping to redefine the capabilities and profitability formalized ways—ways that can of the world’s leading capital markets firms. CAPITAL MARKETS GUIDE I 87 Computers Break the News The next IT revolution in capital markets may be when computers trade on the news—that they have read and understood. Anyone reading this guide is already David J. Leinweber convinced that trading has been transformed Principal, by information technology. High-frequency Leinweber & Co. trading reaches to ever-higher frequencies, driven by quantitative information at micro levels. Fewer headlines herald another information technology revolution in markets: trading and The sentiment ratings are investing driven by events that arrive as qualitative, remarkably consistent with the textual and relationship information. Watson’s direction of price moves. All the Jeopardy! win is an impressive reminder that green positive sentiment curves computers can be good at that, too. go up, and all the red negative sentiment lines go down. Using computers to understand news text goes back to the 1980s. Skeptics held to the conventional And 90 percent or more of wisdom “buy on the rumor, sell on the news,” those excess returns appear implying that prices delivered news before it was to occur before the news event, released publicly. Academic research on the first to the detriment of hopeful, 20 years of electronic news confirmed that view, computer-news-driven investors. as shown in Figure 1.