Max Bowie: From High Performance to High Octane
Marketing executives in the financial technology and market data industries love to use imagery of Formula One cars to promote their products. And it’s no surprise: the speed, the performance, the risk, the glitz and glamor. Both industries depend on operating at peak performance to create a winning strategy amid intense competition.
And being a huge F1 fan, I was thrilled to have NBC Sports F1 commentators Steve Matchett and Leigh Diffey as guest speakers and presenters of this year’s Inside Market Data and Inside Reference Data awards to describe the parallels to an audience of our readers.
While the speed of F1 cars is perhaps the most-overused cliché, it’s far from the only one. For example, just as trading firms must carefully monitor factors like value-at-risk and deposit margin with marketplaces, prospective F1 teams must pay millions of dollars to the sport’s governing body before they are allowed to compete, as a guarantee that they have the serious funding required to see them through a season in the sport. And like in finance, to do more than just compete—which will cost at least a $20 million endeavor for even the most penny-pinching team (several of which are reportedly in dire financial straits)—one needs to make continual upgrades and investment to maintain peak performance, which don’t come cheap. Gone are the days of “gentlemen racers” and privateer teams that would turn up for a few races and then depart, as in the 1960s and 1970s.
Another change from that era is safety: Back then, crowds were close to the track and separated from the asphalt only by hay bales; drivers and track marshals were routinely injured or worse. Now, tracks have been upgraded at a cost of billions with large run-off areas to protect spectators and slow an out-of-control car. A padded “collar” around the driver’s cockpit prevents drivers from being thrown from side to side like rag dolls in the event of a crash, while the HANS (Head and Neck Support) device that connects to the rear of drivers’ helmets prevents their heads from being thrown forwards and backwards under the g-force loads of cornering, accelerating, decelerating, and impact. The monocoque “cocoon” in which the driver sits must pass rigorous crash tests, and teams are experimenting with enclosed cockpit devices designed to prevent drivers from being hit by debris.
And in finance, authorities have made similar efforts to protect participants and investors—though like in F1, it usually takes an horrific event (like the pit lane fire that engulfed Jos Verstappen’s Benetton F1 car at Hockenheim in 1994, where Steve Matchett was rear jack operator) to spur protective measures. Both industries are ruled by uncompromising governing bodies that impose strict rules and seem to take pleasure in enforcing them. But whether you think of an F1 driver as the pilot of a wheeled missile or derivatives as “weapons of mass destruction,” you understand why so much regulation is important. And in a trading environment, speed of data and execution is important, though arguably brakes and a steering wheel are more important than top speed alone.
In finance, authorities have made similar efforts to protect participants and investors—though like in F1, it usually takes an horrific event to spur protective measures
Collecting and Processing
And last but certainly not least is the sheer volume of data that the F1 teams collect and process in real time: timing data, information from sensors on the cars, which the teams collect and send from whatever track they’re at around the world to the teams’ home bases (mostly in the UK) for analysis, the results of which are then sent back to the trackside to be incorporated into race strategy, or to warn the team and driver that a component might be near breaking point.
In fact, one shot inside a pit garage at the recent Spanish Grand Prix showed half a dozen or so members of one team intently watching banks of data monitors for some anomaly or opportunity. I couldn’t help think of a trading floor. And I couldn’t help think that there must be much that these industries can learn from one another. So perhaps our awards helped convert some more fans to F1, and perhaps it will inspire market data professionals to think about some of their challenges in a different way.
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
Ice moves to meet demand for greater cloud, AI capabilities
The exchange also outlined competitive advantages behind managing its data and cloud strategy internally during its Q1 earnings call on Thursday.
FactSet looks to build on portfolio commentary with AI
Its new solution will allow users to write attribution summaries more quickly and adds to its goal of further accelerating discoverability, automation, and innovation.
How Ally found the key to GenAI at the bottom of a teacup
Risk-and-tech chemistry—plus Microsoft’s flexibility—has seen the US lender leap from experiments to execution.
The IMD Wrap: Beginning of the end for data audits?
This week, there’s exciting news for data bean-counters in the form of a partnership between two vendors that could change the way we view and track data usage and audits.
S&P debuts Spark Assist genAI copilot, draws up ‘Blueprints’ of combined datasets
S&P’s Kensho subsidiary has rolled out new emerging tech products leveraging AI to explore and combine the vendor’s wealth of datasets to solve common use cases.
Nasdaq reshuffles tech divisions post-Adenza
Adenza is now fully integrated into the exchange operator’s ecosystem, bringing opportunities for new business and a fresh perspective on how fintech fits into its strategy.
Liquidnet sees electronic future for gray bond trading
TP Icap’s gray market bond trading unit has more than doubled transactions in the first quarter of 2024.
Verafin launches genAI copilot for fincrime investigators
Features include document summarization and improved research tools.
Most read
- Chris Edmonds takes the reins at ICE Fixed Income and Data Services
- DTCC urges affirmation focus ahead of T+1 move
- Women in Technology & Data Awards 2024: All the winners and why they won