Choosing an Architecture For Simulations and Backtesting

Posted by Scott Jeschonek on Wed, Nov 15, 2017 @ 01:35 PM

Evaluating Your Options to Boost Alpha Throughput via Cloud Compute

 

 

In our last related post, we talked about what alpha throughput was and how technology can have an effect. By increasing their throughput, firms can work to increase potential and gain competitive advantage.

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Topics: Hybrid Cloud NAS, Cloud Compute, Financial Analysis

Technology and Alpha Potential

Posted by Scott Jeschonek on Mon, Oct 30, 2017 @ 11:15 AM

People in the financial services industry, especially in the hedge fund space, are always looking for new and profitable trades. However, with large quantities of data available to more players than ever before, the challenge of find an 'edge' is greater than ever. This challenge reaches back from the analysts into the IT department, as the work is completely dependent on a firm’s ability to not only crunch data in less and less time, but access large amounts of it readily.

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Topics: Data Center Management, Cloud Compute, Financial Analysis

Hedge Firms: Here’s How to Keep Your Backtesting Capacity Options Open

Posted by Scott Jeschonek on Thu, Sep 21, 2017 @ 09:25 AM

Backtesting is more important today than ever before. A hedge firm’s competitive advantage lies in the quality of its investment ideas. And the quality of its investment ideas relies on comprehensive and fast simulations of trade scenarios. So, what do you do when you run out of backtesting capacity?

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Topics: Data Center Management, Cloud Compute, Financial Analysis

For Hedge Fund Backtesting, Timing is Everything

Posted by Greg Ulepic on Thu, Sep 07, 2017 @ 10:00 AM

You’ve got a talented quant team that devises sophisticated strategies out of signals they locate in troves of data. They are looking at everything from shipping data to the shadows of Shanghai office buildings as seen from a satellite. And they’ve just found a new signal, potentially a great one.

There’s just one problem. You don’t have the capacity to backtest it quickly enough to trade on it by the time the markets open the next morning, thus losing a possibly golden opportunity for alpha.

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Topics: Data Center Management, Cloud Compute, Financial Analysis

Hedge Fund IT - Managers Are Looking Beyond the Data Center

Posted by Greg Ulepic on Tue, May 02, 2017 @ 09:02 AM

IT managers at hedge funds are being squeezed by conflicting demands. On one hand, the increasingly competitive nature of the hedge fund industry is driving fund managers to come up with better investment ideas, and the analytics for that requires more computing and storage capacity than ever before. Meanwhile, more volatility in the markets and increased regulation have made it more important for funds to manage risk. On the other hand, financial pressures bearing down on hedge funds often limit the budget of IT, the very resource that can help them with the first two demands.
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Topics: Data Center Management, Cloud Compute, Financial Analysis

Data Analytics in Financial Services - The Quandary of Cloud

Posted by Greg Ulepic on Tue, Apr 18, 2017 @ 04:10 PM

Today’s hedge funds operate in an increasingly competitive market, where a good investment idea may no longer be enough to make it stand out in the crowd. Several trends are converging, driving hedge funds to analyze greater volumes of data, from more sources, faster, in hopes of generating better investment ideas that produce greater alpha.

Three Trends Driving Data Analytics in FinServ

First is the increased volatility in markets and across asset classes. Things are changing fast, and sometimes quite dramatically. Second is the availability of different types of data to use in analytic modeling for financial services. Firms no longer need rely solely on financial data, but can factor things like recent news, regulatory actions or patent filings into their analysis. In fact, sometimes, the biggest opportunities involve trading on the second derivative of the latest news, Bill Fearnley Jr, research director of compliance, fraud and risk analytics at IDC Financial Insights, explained in a recent Avere Systems webcast. Third, firms now have access to more data over longer time horizons, which helps them test models over a larger number of different market scenarios.

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Topics: Data Center Management, Cloud Compute, Financial Analysis

Alpha in an Age of Surprises

Posted by Greg Ulepic on Wed, Apr 05, 2017 @ 02:05 PM

Regardless of politics, several major world events in 2016 came as a surprise to most. Few foresaw the passage of Brexit in the U.K, and, in the U.S. presidential election, most polls predicted a landslide win for the losing side. Let’s not forget one of the biggest surprises of 2016: the Chicago Cubs won the World Series, after a drought of more than 100 years.

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Topics: Data Center Management, Cloud Compute, Financial Analysis

The State of Cloud Adoption in Financial Services at FIA Expo 2016

Posted by Gretchen Weaver on Mon, Oct 24, 2016 @ 12:50 PM

In marketing, we talk about product lifecycles and most often, the theory of diffusion of innovations is used to explain market growth, shifts, and declines. This theory, developed by Everett Rogers, attempts to explain how innovations are communicated among people in a social system. Others have attempted to bring forth modified ideas, like Malcom Gladwell in The Tipping Point, but despite being introduced in 1962, Rogers theory continues to hold its own, especially when looking at his “categories of adopters.”

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Topics: Financial Analysis

The Shift to Cloud in the Finance Sector

Posted by Gretchen Weaver on Thu, Oct 06, 2016 @ 03:04 PM

Information technology groups for the finance sector are unique in many ways, perhaps mostly regarding the need to make quick decisions using very large sets of data. Top performance can quickly position a company just right for market conditions. Like other industries, many financial services companies are turning to the cloud to increase computing capacity, but deciding how and when to use it continues to be topic of debate. In a few weeks, we will test the pulse of cloud adoption at the FIA Futures & Option Expo in Chicago to determine what has changed in financial services firms.

Last year at FIA, a panel openly discussed use of the cloud. In it, a few key points were summarized:

  • While cloud services were being heavily leveraged, the participating panelists supported a hybrid infrastructure model so that workloads demanding ultra low-response times (microseconds) could run “on-metal”.
  • Amazon Web Services users dominated the panel, with little mention of secondary or alternatives being tested.
  • Panelists overwhelmingly agreed that cloud security was likely better than that of their in-house data centers.
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Topics: Data Center Management, Hybrid Cloud NAS, Financial Analysis

Four Benefits of a Hybrid Cloud Infrastructure for Financial Services

Posted by Gretchen Weaver on Thu, Sep 15, 2016 @ 02:35 PM

Market forces and increased volatility are challenging financial service organizations to make changes that allow for operational efficiencies. How companies go about doing that varies widely, but the once shunned idea of using cloud service providers is becoming more and more attractive. Cloud resources can change the possibilities with nearly unlimited compute resources minutes away from deployment.

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Topics: HPC, Data Center Management, Financial Analysis