Enormous volumes of data might be the lifeblood of quantitative analytics, but for the typical trader, dealing with data in any asset class can be complex, costly and daunting. With the explosion of data in recent years and the continuing appearance of new data sources, the challenge for practitioners is growing all the time and they need the power to identify and extract the data that is most relevant to them. Attempting to isolate data using standard spreadsheets is much like using a bucket and spade to find a grain of sand on a beach – it simply can’t be done. Traders need to understand how data has been sourced and they must be able to curate and store large volumes of data in an accessible and manageable format so that they can
The rise of quantitative analysis is mirrored by a rise in demand for its fuel – data. With one feeding the other, investment firms and banks are increasingly reliant upon products and services that can be tested and proven in a way that for many markets was impossible ten years ago. As a result, the use of outsourced tick data provision is becoming prevalent in order to support that rapid growth. Tick data – capture of the price, time and volume for every order and execution across the instruments on a given trading venue – can provide enormous value for exchanges, broker-dealers and asset managers in this context. Ten years ago, it was seen as the preserve of firms building execution algorithms. Now that demand reaches across an enterprise. From compliance to business growth, tick data sits behind many key decisions.
