By Yulia Kuksina, Global Sales and Marketing, GlobalTrading.
In April 2014 the GlobalTrading journal conducted a survey of senior market participants with the objective of understanding recent trends in big data and analytics in electronic trading. Senior representatives from the buy-, sell-side, exchange, and vendor community contributed their opinions on the matter.
The key overall message from the survey was that automation is a growing trend on the trading desk. It was a unanimous reply from respondents. In addition all of the respondents supported the view that managing big data was either essential (50% of respondents) or important (another 50%).
The survey has also supported the recent trend of using big data for improved decision making processes with around 30% of respondents agreeing that it is a key business driver to use this type of technology at their firms. Regulatory compliance was the second most important driver of big data. Among other important drivers for implementing big data technology the respondents identified risk management and prevention and experience/historical analysis. Operational improvement topped the list of somewhat important business drivers for using big data, although it was the last on the list of most important priorities.
The survey has also looked at the top priorities associated with data management. Standardisation was identified as one of the top priorities. Surprisingly data protection did not score highly.
Spending Trends on Big Data, Data Anaytics and Cloud Technology
90% of respondents predict spending to increase. And the majority of respondents see use in the combination of outsourcing with building capability in-house as their likely future big data implementation strategy. The survey also supported the trend for the higher uptake of cloud technology in the industry with around 40% of respondents already using cloud and about 60% of respondents predicting spending on cloud technology to increase in the near future. Data protection remains one of the key concerns with regards to moving data storage to the cloud.
Over 80% of respondents are already using data analytic tools and 90% of those who do not are considering using them in the near future.
According to the survey, the usage of historical analytic tools in the electronic trading industry dominates the use of predictive by around 20%. 90% of respondents believe that historical analytics tools are more reliable than predictive ones.
Regardless of the growing buzz around social media, 70% of respondents do not see value in integrating data from social media.
GlobalTrading Survey Findings: Big Data Trends in Electronic Trading Industry.
