The Transformational Influence of Big Data in the Global Capital Markets

Transcription

1 The Transformational Influence of Big Data in the Global Capital Markets

2 Disclaimer 2

3 Speakers Paul Cassell Chief Information Officer, Paul Cassell is the Chief Information Officer at Pico. In this role, Paul oversees all aspects of Pico s technology function, including network and systems engineering, data center operations, disaster recovery and business continuity planning and technology policies and procedures. He also leads the firm s growing consulting division, Pico Consulting, a division of SpryWare, LLC. Paul has over 25 years of experience in financial services and technology. Most recently, he served as founder and President of PC IT Consulting Inc. There he helped top-tier clients transform their IT operations. Paul also served as U.S. CIO for NYSE Euronext and the New York Stock Exchange, where he oversaw a $300 million budget for an S&P 500 company with more than $3.5 billion in annual revenues and a workforce in excess of 1,500 that spanned three continents and 10 countries. Daniel Bartucci Director, Corporate Development, Daniel Bartucci leads Corporate Development at Pico, and focuses on Pico s corporate strategy, consulting, partnerships, and key accounts. Dan has over 15 years of experience in financial services and technology. Before joining Pico, Dan was the Director of Business Development for RFA. In this role Dan lead sales, relationship management, and strategic relationships. Prior to RFA, Dan was a Managing Director and the Head of Institutional Sales in North America for NYSE Technologies. During this time, Dan was involved in several key product launches, including the NYSE Capital Markets Community Cloud and the launch of the Toronto liquidity center. Dan also spent over 10 years at ITG across various roles in the sales, trading, and technology organizations 3

4 About Pico Pico is a financial technology services firm established under the business principles of providing dis*nguished products and services, delivering innova*ve and pragma*c technology solu*ons plus offering significant market structure and regulatory exper*se. Pico s client base encompasses a full spectrum of market par*cipants; hedge funds, asset managers, trading firms, family offices, banks, broker dealers, hedge funds, technology vendors, and liquidity venues. Since our founding in 2009 we have grown to over 90 employees, 3 offices, 14 data centers and solu*ons across asset classes. It is with the help of these employees and leading automa*on tools that we are able to deliver outstanding service quality. We con*nuously train our staff to fulfill these high expecta*ons to customer sa*sfac*on. *Pico Global Ltd is registered as a Private Limited Company in England and Wales. Pico Technology Hos*ng & Managed Infrastructure Market Data Solu*ons Risk Management Regulatory Repor*ng Outsourced QA Tes*ng Managed FIX Connec*vity Technology & So^ware Consul*ng Equipment VAR 4

5 Social Networking Audience Par*cipa*on 1. What is the first source you use for breaking news events? a. Radio b. Television c. Social Media/Internet 2. How many devices do you have receiving data or news updates? How many are carrying now? 3. How many of you have at least one social media profile? Source: Sam Kalidi/Twitter 5

6 Social Networking Bri*sh Airways B777 le^ engine explodes on takeoff in Las Vegas Twifer floods the story first, ahead of major news channels Survivors take photos and video during evacua*on and post to social media sites such as Twifer What can you do if you are a trader long Boeing or the engine manufacturer, etc? 6

7 Social is the New Norm Social networking integra*on is the new normal. $136 Billion in Equity Market Value 7

8 60 Seconds SOURCE : h*p:// minute- infographic.html Confiden*al 8

9 60 Seconds 1 MicroSecond : 1 Millionth of a Second Seconds Strobe Light Flash 1,000,000 Flashes per Second 1 MilliSecond: 1 Thousandth of a Second Seconds 250 MilliSeconds = Human Eye Blink 4 Blinks per Second A single trading algorithm can carry out anywhere between 3,000 5,000 transacsons in the Sme it takes to blink. Average Share * Hold Time FOUR DAYS EIGHT MONTHS TWO MONTHS TWENTY SECONDS * SOURCE : TradeCiety.com 9

10 TradiSonal Market Data Snapshot : October 29,2015* Highest one second peak of market data per minute High 9:30am 5.59 million messages Low 12:58pm 271 thousand messages October 28 : Peak 7.09 million messages High/Low DifferenSal: 2.94 million messages Seconds per trading day: 23,400 68,796,000,000 billion messages Intraday sta*s*cs provided by Exegy 10

11 Challenges Structured market data con*nues to grow in volume. Message rates rapidly accelerate in *mes of high market vola*lity. The Known Challenges in Capital Markets Real *me and historical data enablement costs con*nue to increase. Access policies are undergoing near constant change. Fundamental data includes a deeper range of consumer metrics. Low latency technologies including both hardware and so^ware can make a level playing field with the appropriate investment or commitment. Data is easy to store, harder to efficiently access. 11

12 Challenges More real- *me trading decisions made from unstructured data sources. Defining use cases for retained data from historical review, analy*cs, to sales and customer informa*on. The Emerging Challenges in Capital Markets Trading con*nues to shi^ from simple equi*es to complex instruments. How do you make unstructured data uniform and searchable? Data privacy regula*ons and approach to owning your own data and knowing its whereabouts at all *mes. Appropriately segrega*ng data by importance and access needs. Security. Security. Security. 12

13 Sourcing Outsourcing Selec*ng a trusted partner with relevant knowledge Data ownership and protec*on issues Reduced / No capital expenditure Scalable cost model for data inges*on and future growth Building a House Resource and talent constraint Limited collabora*on Control of data sources and use Large capital expense and frequent builds to add data feeds and sets 13

14 Strategy Building A Data Ecosystem Ac*ve Trading Automa*on Structured Unstructured Data Sources Historical review and tes*ng Security and Sales and client metrics Quality and Tes*ng Data Loss Preven*on 14

15 LEGAL NOTICE The content provided in this presenta*on contains confiden*al and proprietary informa*on of Pico Quan*ta*ve Trading LLC and its affiliates. It is intended for informa*onal purposes only. Although we believe this content to be correct, we do not warrant the accuracy or completeness of any informa*on. The content provided in this presenta*on is not intended to provide specific financial, tax, legal or accoun*ng advice and should not be relied upon in that regard. This presenta*on does not cons*tute an offer to sell or a solicita*on of an offer to buy any securi*es or interests, nor may it be interpreted to provide investment advice. Performance data provided represents past performance and is not necessarily indica*ve of future performance. Future results may vary and in no event are guaranteed. 15