Looking for Innovation in the World of Ideas
This month, let’s look at a technological innovation and a philosophical innovation, both of which in their own way can inspire new ways of thinking about data management. Popular science author and lecturer David Eagleman, whose previous takes on neurological functions have been applicable and useful for data operations, speaking at Teradata’s Partners client conference last month, shared his new technology, Vest (Versatile Extra-Sensory Transducer).
Vest is a vest that one can wear. It was conceived to help hearing-impaired people feel speech, but market indicators can be fed into its array of small vibration motors. The wearer can then choose a green or red button based on the feeling those motors convey. Choosing a button to press based on the stimuli determines whether the stock is bought or sold, Eagleman revealed in his presentation.
This technology and experiment fascinates because it makes so-called “gut feelings” and hunches about the market an actual functional system, not something to be dismissed or laughed at. For institutions dealing with more than just single transactional decisions, Vest can provide a feel for information that would otherwise have to be pulled from stores of reference data, and then processed or interpreted to yield insights. If widely adopted by the industry, Vest would streamline and accelerate reading and understanding of reference data, and increase the accuracy of data processing. Fallible human vision could be complemented by other senses to enhance professionals’ abilities to evaluate financial data.
Telling Right From Wrong
Speaking of human fallibility, the other innovation that can be applied to data management is more about a way of thinking and inquiring about perceptions and how science and technology are perceived—and how scientific and technological efforts are carried out. Pop culture writer Chuck Klosterman has an excellent new book out called But What If We’re Wrong? in which he writes about the likelihood of conventional wisdom on topics such as music, sports and politics eventually changing to the exact opposite of what it is now. His approach to scientific understanding is that the best hypothesis to use to test scientific theories is “one that reflexively accepts its potential wrongness to begin with.”
If widely adopted by the industry, Vest would streamline and accelerate reading and understanding of reference data.
I can’t imagine that regulators would be happy if firms reported their risk with the caveat that the regulators should take the figures with a grain of salt, but the industry has seen plenty of predictions over the past 10 or 20 years that turned out to be wildly inaccurate—the dotcom and housing bubbles are just two that come to mind.
So, when looking at risk data management compliance in particular, keep in mind that any compliance plan—including consideration of relevant regulations such as the Fundamental Review of the Trading Book, Basel III and BCBS 239—ought to have a contingency plan for incorrect assumptions or errors being found in reporting.
Accepting Criteria
If you accept Klosterman’s criteria for a scientific or financial risk hypothesis (he calls it “Klosterman’s Razor,” after Occam’s Razor), you have some newer tools for developing measures to weed out incorrect theories or assessments. These include improved linkages between data sources, more adoption of identifiers and more comprehensive assignment of those identifiers. The industry’s challenge is to use these tools to strengthen risk assessments and stamp out wrong investment hypotheses.
Assuming that the standard practices are wrong might sound like the same sort of “gut feeling” about financial investments and operations that needs much more support—the kind that can be provided by a “smart” vest technology. Klosterman’s idea, applied here, can be taken as a challenge to interrogate data management and governance plans more intensely. In fact, to stay sharp as a data professional, one ought to think about innovations and different ways of thinking. Both Vest and Klosterman’s Razor are worthy subjects.
Only users who have a paid subscription or are part of a corporate subscription are able to print or copy content.
To access these options, along with all other subscription benefits, please contact info@waterstechnology.com or view our subscription options here: http://subscriptions.waterstechnology.com/subscribe
You are currently unable to print this content. Please contact info@waterstechnology.com to find out more.
You are currently unable to copy this content. Please contact info@waterstechnology.com to find out more.
Copyright Infopro Digital Limited. All rights reserved.
You may share this content using our article tools. Printing this content is for the sole use of the Authorised User (named subscriber), as outlined in our terms and conditions - https://www.infopro-insight.com/terms-conditions/insight-subscriptions/
If you would like to purchase additional rights please email info@waterstechnology.com
Copyright Infopro Digital Limited. All rights reserved.
You may share this content using our article tools. Copying this content is for the sole use of the Authorised User (named subscriber), as outlined in our terms and conditions - https://www.infopro-insight.com/terms-conditions/insight-subscriptions/
If you would like to purchase additional rights please email info@waterstechnology.com
More on Emerging Technologies
Former Goldman analyst aims to blend GenAI and synthetic data with start-up
Synthera.ai is taking a novel approach to calculating risk. While promising, industry observers are skeptical.
Waters Wavelength Podcast: Bloomberg’s Tony McManus
Tony McManus, global head of enterprise data division at Bloomberg, joins the podcast to talk about the importance of data in the context of AI and GenAI.
Devil’s Bargain: Closed architecture systems will derail AI ambitions
Rob Flatley explains why closed-off systems will fall flat when it comes to AI adoption.
This Week: First Trust/Bloomberg/New Constructs, Cboe/Metaurus, LTX/MultiLynq, and more
A summary of the latest financial technology news.
Waters Wavelength Podcast: S&P’s CTO on AI, data, and the future of datacenters
Frank Tarsillo, CTO at S&P Global Market Intelligence, joins the podcast to discuss the firm’s approach to AI, the importance of data, and what might be in store for datacenters in the coming years.
BMO’s cloud migration strategy eases AI adoption
The Canadian bank is embracing a more digital future as its cloud strategy makes gains and it looks to both traditional machine learning and generative AI for further augmentation.
Waters Wrap: GenAI and rising tides
As banks, asset managers, and vendors ratchet up generative AI experiments and rollouts, Anthony explains why collaboration between business and tech teams is crucial.
Most read
- Waters Wavelength Podcast: S&P’s CTO on AI, data, and the future of datacenters
- Chris Edmonds takes the reins at ICE Fixed Income and Data Services
- Waters Wavelength Podcast: Bloomberg’s Tony McManus