Data management crucial for successful algorithmic trading in China
Chris Burke, director for Asia Pacific at Kx Systems, feels that the ability to successfully trade in international markets hinges on data management capabilities. July 19, 2012 | Chris BurkeGlobal data volumes are rising more rapidly than ever before and there seems to be no likelihood of that trend reversing. Worldwide equity markets alone produce around 3 billion records per day. Globalisation is increasing the number of market data sources, while the complexity of data-dense products such as derivatives further drives volume. This presents difficulties to those wishing to trade in international markets, but for those in emerging regions who may not previously have required the capacity for data management on a global scale, the challenge is compounded even further. Trading is wholly contingent on the ability to manage this data in a way that allows for algorithmic trading, pre-trade compliance, complex event processing, regulatory compliance and reference data management. None of these are aspects that can be bolted on or phased in later: all are required from the start. It is against this backdrop that brokers in China are now finding out the inadequacies of their banks’ legacy systems. They were never designed to manage the sheer volume of real-time and historical data, and the real-time requests that are now demanded of that data. High performance is now a requirement simply to keep pace. The data advantage At the moment, many financial institutions in China do not keep their own market data at all, relying on third-party vendors where necessary. This may have met past requirements, but presents major obstacles to the new high performance world: companies cannot control the end-to-end latency of accessing data when it is not in their own database and it will be in multiple formats as it arrives from vendors. Traditional formats do not allow high-speed access to both intra-day and historical data required to be able to use historical data as part of pre-trade risk calculations. Real-time and historical data have the same requirements and must be treated together. There is little point optimising re... Please login to read the complete article. If you already have an account, you can login now or subscribe/register.
Categories: China, Data & Analytics, Data Management, Exchanges, Markets & ExchangesChina,Data & Analytics,Data Management,Exchanges,Markets Exchanges, China,Data & Analytics,Data Management,Exchanges,Markets & Exchanges, Keywords:Market Data, Algorithmic Trading, Legacy Systems, Real-Time Data, Historical Data, Data Storage, Data Compression Market Data, Algorithmic Trading, Legacy Systems, Real-Time Data, Historical Data, Data Storage, Data Compression
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