Analytics tools are at the forefront of fintech innovation — whether it be for improving compliance or enhancing workflows. Our whitepaper series ‘The New Age of Analytics’ looks at developments.
The benefits of analytics tools are clear, but what does the future look like and how can you leverage data visualization and analytics to grow your business?
Our three-part white paper series The New Age of Analytics will help to find these answers.
Read the first part of The New Age of Analytics: How Real is Real-Time Analytics?
From understanding what’s being done to prepare for the evolution of real-time analytics, to discerning methods to convert unstructured data to structured, this series will dive into the new age of analytics, and explain what that means for you.
Compliance tools
Successfully leveraging the right analytics tools presents new opportunities around workflow effectiveness and compliance efficiency.
For example, quant traders are better equipped than ever to perform backtesting activities that drive outperformance and revenue growth, thanks to the better use of analytics.
Developers have also increased access to content and visualization tools,allowing them to develop a variety of management systems.
And compliance and risk officers are benefiting from improvements in detecting trading abnormalities for the purpose of preventing fines and reputational damage.
Best execution
A good example of this is best execution analysis, which is a primary component of success for firms who want to be compliant with MiFID II, which is due to come into effect in January 2018.
Exchanges and broker-dealers will need to publish quarterly execution quality reports, which institutional asset managers will use to show they achieved best execution for their clients.
As a result, it is expected that many buy-side firms will need more data to ensure they have fulfilled their execution-quality responsibility.
Firms are re-thinking how they should deliver analytics to their end users, as well as coming under continued pressure to secure efficiencies out of their infrastructures and organizations.
The pace of global regulation isn’t slowing down, neither is the need for simplicity in building better systems and identifying trends across enterprises.
Cloud analytics
The cloud is not new, but most buy and sell-side firms are still developing their strategies around the distributed-computing based technology model. So can the cloud mix with analytics and overcome the obvious regulatory, security, and performance hurdles?
One of the primary drivers for banks, brokers, and asset managers to move data and processes into the cloud is to reduce the total cost of ownership.
But as cloud computing becomes more prevalent, so the financial industry has to properly weigh its benefits and risks, particularly in relation to high-frequency traders.
These challenges are addressed in more detail in the first white paper in our series:
- How do firms implement analytic offerings in a world of distributed computing?
- What impact will government regulations have on real-time analytics requirements? Will the evolution of IoT impact the future of real-time analytics?
- Will the adoption of new technologies introduce an analytics speed bump?
- How will customer usage of real-time analytics evolve? What’s being done to prepare for that evolution?
Subsequent white papers will look at regulatory transparency and big data analytics. For example, how can analytics usage help reconstitute the lifecycle of a trade and in what ways can firms integrate structured and unstructured data?
Read the first part of The New Age of Analytics: How Real is Real-Time Analytics?
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