The cloud is not just a fast and cost-efficient means to address the short-term, large-scale storage needs of financial institutions. Handling trusted data in this way is a powerful tool in the search for alpha.
- Using the cloud to access large volumes of data is faster, efficient and available on demand.
- The vast majority of financial institutions think that the cloud can be an effective way to receive data to feed automated trading processes.
- Elektron Data Platform delivers trusted data via the cloud, offering access to an extensive range of real-time content.
The traditional approach of having volumes of content delivered to your servers and purchasing significant compute ability — especially for short term use — can be unnecessarily costly and often doesn’t offer enough flexibility.
Many customers estimate that for every US$1 spent on acquiring data, a further $4-8 dollars are spent managing it. Overall, $34 billion is spent managing internal data across financial institutions.
Enter the cloud, which can meet all short term, large scale compute and/or data storage needs.
Using the cloud to access large volumes of data on an ad-hoc basis offers:
- Genuine flexibility, with on demand availability. Simply subscribe to terabytes of data to quickly and efficiently access data as and when you need it in an agile, responsive manner.
- Value. Data may only be required for short periods of time, meaning that it makes commercial sense to pay to access data only when it’s needed.
Demand from financial institutions
Financial institutions are aware of the advantages of accessing data in the cloud.
We recently, in partnership with the A-Team Group, commissioned a survey with trading technology and data professionals at Tier 1 and Tier 2 financial institutions globally.
A significant 90 percent of respondents confirmed that they believe the cloud can be an effective way to receive data to feed automated trading processes.
Moreover, 90 percent of respondents believe that the use of cloud-based services in their automated trading processes will increase in the two years following the survey, with 40 percent believing it will “increase greatly” and 50 percent believing it will “increase somewhat”.
In the digital age, where a generational shift has changed how data is accessed, utilized and stored, can you afford to be left behind?
Cost-effective, quick access to trusted, reliable data is a fundamental need across organizational departments.
For example, quant analysts need to access significant volumes of time series data on an ad-hoc basis as part of ongoing analytical modeling or algorithm back testing.
But more than this, as a trader, quant analyst or researcher, finding alpha is of paramount importance.
Harnessing the power of the cloud can deliver significant advantages because there is no limit to your ability to compute your trading strategies.
There are also important mid and back office use cases. Middle office staff need reliable access to market price data as quickly and efficiently as possible.
In addition, reference data is used extensively across front, middle, and back offices for trade decision support, modeling, and settlement/end of day purposes.
Addressing security fears
In the past, security concerns around data in the cloud were prevalent, but this mindset has now changed.
In fact, security has become a primary reason to adopt the cloud.
Cloud providers have focused on security concerns in recent years, ensuring watertight solutions and pouring significant resources into solving the security issues and concerns of the past.
This vast investment means that the cloud is now one of the safest places to do business.
Many large organizations have already embraced the cloud and these early adopters are reaping the benefits of the technology, with many expecting to move 90 percent of all applications and workloads to the public cloud within the next three to five years.
While security concerns may persist in some geographies, fears over security must be weighed against the opportunity cost of not tapping into this ever-evolving resource.
Trusted data via the cloud
When it comes to getting the most from data, the new win-win-win solution is a perfectly balanced three way partnership between cloud provider, data provider and customer.
The Elektron Data Platform delivers trusted data via the cloud, and offers consolidated access to an extensive range of real time content across a wide range of asset classes and geographies.
While we continue to develop, enhance and improve our offerings in this space, the intelligent solution to your large-scale data needs is already here.