December 2012: The Other Butterfly Effect
When I was young, like all kids, significant periods of my life were marked by the current craze on which I was fixated. There were snakes, spiders and scorpions—both land and water—kites and paper airplanes, collecting pollen from tree-tops, and, in the wet season, tormenting the giant carnivorous African bullfrogs that would appear seemingly from nowhere after the first rains of summer, which would bare their teeth and hiss spectacularly when prodded with a stick.
One summer was devoted to my budding interest in lepidopterology. That was until I came to the realization that butterflies looked far more beautiful flitting from flower to flower than they did frozen against my polystyrene mounts, pinned indelicately through the wings and abdomen. I still remember the frustration of attempting to catch them without damaging their fragile wings, a task easier said than done for a cumbersome seven-year-old. That’s why, when I first encountered the term “butterfly effect,” I assumed—naively—that it was used to convey the transient nature and fragility of all things beautiful.
Now I know that the term, coined by Edward Lorenz and used extensively in chaos theory, describes how small, seemingly insignificant changes at a certain point in a deterministic non-linear system can, under certain circumstances, lead to large differences at a later point. Back to my childhood understanding of the butterfly effect: As this is the December issue, it includes the write-ups from the Buy-Side Technology Awards, which begin on page 31. They outline a number of significant acquisitions that have taken place over the last year, the two most noteworthy of which are those of Cadis and Algorithmics, now Market EDM and IBM Risk Analytics, respectively.
Acquisitions are a natural consequence of any maturing industry and are generally conceived for the good of all involved. However, they are not without their challenges, chief among which is the threat they can pose to the acquired entities. All that which sustained and nourished firms like Algorithmics and Cadis—their nimbleness, competitiveness, customer focus, resourcefulness, and market-leading intellectual capital—is at risk of being inadvertently diluted by their larger parent companies. Naturally, Markit and IBM will be aware of this—they have, after all, been playing the acquisition game for quite some time—but this industry is awash with examples of ham-fisted acquisitions that for one reason or another have led to the decline of outstanding, yet potentially fragile, technology firms.
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.
As outlined in our terms and conditions, https://www.infopro-digital.com/terms-and-conditions/subscriptions/ (point 2.4), printing is limited to a single copy.
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. As outlined in our terms and conditions, https://www.infopro-digital.com/terms-and-conditions/subscriptions/ (clause 2.4), an Authorised User may only make one copy of the materials for their own personal use. You must also comply with the restrictions in clause 2.5.
If you would like to purchase additional rights please email info@waterstechnology.com
More on Emerging Technologies
This Week: What is going on?
Is it weird that Euronext bought Substantive? It’s weird, right? Plus WFIC, tick sizes, Microsoft and BlackRock want more datacenters for some reason, and, of course, AI. What does it all mean?
Waters Wavelength Ep. 288: Media’s changing landscape
Wei-Shen and Tony discuss ways to improve the podcast going forward.
Fidelity’s quantum exploration unites theory and proof
The asset manager and Amazon have teamed to put a quantum twist on machine learning.
GenAI could connect ‘constellation’ of vital information technologies
At WFIC, Six Group’s Marion Leslie highlighted the opportunities and risks that the technology holds.
Why can’t we be friends?
The ABA vs most every regulator. LSEG vs BBG. AI vs SaaS. Buy vs build. Lots of drama in the capital markets.
DORA will change the buy vs. build debate… maybe
Waters Wrap: With DORA’s deadline looming, trading firms are having to reassess their long-term tech strategies. Anthony wonders if that means more building and less buying.
JSE rolls out exchange data to cloud Marketplace, built with DataBP
The move—part of a broader cloud migration at the exchange—allows financial firms to connect and subscribe to JSE news, market data, and analytics via the cloud.
The SEC needs a hand with artificial intelligence
The SEC wants to take a tough stance on AI, but it has a talent problem… or a marketing problem. Or both…