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BIG DATA IN CAPITAL MARKETS: EXPANDING THE SEARCH FOR BIG IDEAS. March 14, 2013 Webinar. Bill Fearnley, Jr. Securities & Investments / Capital Markets. Big Data in C apital M arkets : An overview. Section 1. The three V’s of Big Data: Volume, Velocity, and Variety. Source: Celent.
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BIG DATA IN CAPITAL MARKETS: EXPANDING THE SEARCH FOR BIG IDEAS March 14, 2013 Webinar Bill Fearnley, Jr. Securities & Investments / Capital Markets
Big Data in Capital Markets: An overview Section 1
The three V’s of Big Data: Volume, Velocity, and Variety Source: Celent
The quantity of market data continues to grow Consolidated feed wire protocol network Traffic (in Kbps) Source: Interactive Data Corporation. December 2012
Variety of data types Source: Celent research
The three steps to Big Data Source: Celent
Demand drivers for Big Data in capital markets Source: Celent
Multiple types of firms are investing in Big Data Indicates significant interest in a particular feature of Big Data Source: Celent
Large custodians have access to many sources of data Market data Transaction data • Portfolio management • Trading • Pricing • Analytics • Performance analysis • Investment valuation • Risk analytics & reporting • Client reporting Front office Middle office Expand, utilize and exploit Big Data ideas to drive and exchange more timely trading/investment decision intelligence and enablement Typically in-house approach Outsourced approach (growing) Source: Celent:
Big Data in capital markets: Front, middle and back office Section 2
Big Data investment in the front office Indicates greater interest in a particular feature of Big Data Source: Celent
Trading: Evolution of correlations of different asset classes with the S&P 500 Evolution of the correlation of different asset classes with the S&P 500 Source: “Understanding the recent rise in correlations,” William J. Coaker, Jr.
Trading: Market visualizations Source: Finviz.com http://1.bp.blogspot.com/-Vdko5B1Lg8w/Tmkgo8cyr3I/AAAAAAAABQ4/EermbnIVR2Y/s1600/Finviz.png
Big Data in the middle office Indicates greater interest in a particular feature of Big Data Source: Celent
Big Data in the back office Indicates greater interest in a particular feature of Big Data Source: Celent
Big Data in Capital Markets: Recommendations and Conclusions Section 3
Our recommendations and conclusions For financial institutions: • Act now: Vast of amounts of data need to be processed in real time/near real time • Big Data throughout the firm: Data access is needed throughout the firm (FO-MO-BO) • Experiment: On a project basis, test new technologies and strategies For vendors: • Provide technology trials and sandboxes: Support client experimentation and testing • Focus on analytics: Capital market firms are looking for actionable ideas…all the time Next event: • Webinar on Analytics in Capital Markets: In April co-sponsored by Celent and SAS. We will be sending invitations shortly and posting webinar details on www.celent.com
Thank you! • This webinar is based on the Celent report • BIG DATA IN CAPITAL MARKETS: EXPANDING THE SEARCH FOR BIG IDEAS, published January 2013 • http://www.celent.com/reports/big-data-capital-markets-expanding-search-big-ideas • A recording of today's webinar and copy of the presentation will be available to Celent clients on our website at http://celent.com/user/login • If you have any follow-up questions about the presentation, please contact Andrew Renzella at arenzella@celent.com