Analytics special report
Click here to download the PDF
Charting the Next Generation of Analytics
Understanding volumes of market data has always been a challenge for traders, asset managers and investors attempting to make sense of numbers flashing across a screen. Hence, over the years, some of the most effective data platforms have been those with analytical tools that help traders make sense of that data, that add context, and provide insight into more than just the in-the-moment price changes. After all, a single price out of context and with no reference to its movement has little meaning, and one of the best ways to display that movement over time is visually.
With the rise of algorithmic trading and the increase in machine-readable data inputs, some of these analytics became entirely computerized, relying on technologies that can crunch vast volumes of data to create their own context without the need of visual displays geared at human traders.
But as it becomes harder to compete in the high-frequency trading space, and as instruments and markets become more complicated, traders in markets with lower levels of automation have discovered new value in analytics' ability to provide insight where machines as yet cannot. And for many at the institutional level, the next stage of analytics will involve more use of black-box engines to perform complex calculations at low latency. But for many more-including those at both the institutional and retail level- while analytics will look very different from those of the past, they will continue to be visual processes: it's just that these will be more complex than before, to account for the fact that higher volumes of faster and more granular data exist today, and will serve the purpose of providing precision insight into these volumes of new data types.
And to accompany these new analytics, expect to see new types of delivery mechanisms to broaden their availability, such as the use of "app store"-like platforms operated by vendors that want to offer compelling analytics but are unable-or see no need-to build their own to compete with established providers. These platforms in turn will also provide a channel for specialist providers to gain a wider audience.
The next generation of analytics is full of opportunity. And taking advantage of the opportunity to leverage these new tools will help investors grasp opportunities in the marketplace that they wouldn't have spotted without them.
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 Trading Tech
Getting aggressive: Overbond uses AI to assess dealer axes
The fixed-income analytics specialist has developed a new tool to help buy-side firms decide if they’re getting a good price from their dealers.
TS Imagine integrates LTX’s pre-trade analytics tool
Users of the fixed-income EMS will now have access to LTX’s Liquidity Cloud tool, which provides a pre-trade score for the likelihood of trading success.
European exchanges turn to dark trading in battle for flow
The EU’s two biggest exchanges are launching dark pools this year. The apparent change in their stances on dark trading reflects a profound shift in equities markets.
After contentious Opra upgrades, vendors brace for a faster future
Upgrades to the datafeed widely used to gauge the current market price for options contracts went into effect in February after three separate delays, which market participants say were caused by persistent bandwidth issues at some important recipients.
The IMD Wrap: No more turf wars, or why CDOs should heed the Voice of the CTO
Max reviews how our recent Voice of the CTO series has implications for those beyond a firm’s technology function, and how communication and collaboration between tech, data, and leadership will deliver better results.
Dark horse: Deutsche Börse building dark pool
New functionality allowing exchange members to execute sweep trades comes hot on the heels of European rival Euronext launching its own dark pool.
Waters Wrap: The tough climb for startups
Anthony speaks with two seasoned technologists to better understand why startups have such a tough time getting banks and asset managers to sign on the dotted line.
European firms prime for lopsided settlement in North America and at home
With T+1 imminent in North America and increasingly likely to traverse the Atlantic, operations and trading professionals in Europe are fighting on two fronts.
Most read
- Women in Technology & Data Awards 2024: All the winners and why they won
- Witad Awards 2024: Above and beyond award (vendor)—Susan Bennett, Tradeweb
- Dark horse: Deutsche Börse building dark pool