Discover the diamond in the mountain of coal
Quants apply an empirically-tested and rules-based approach to exploit perceived market inefficiencies manifested by human behavior, geo-political events and market structure. With tighter spreads, thinner margins and lower risk appetite, quantitative traders are exploring more cross asset trading models and cross asset hedging. Consequently, the quest for new and revised models is never ending. The side effect of this is increasing demands for deep data over longer time periods across a multiplicity of markets -equities, futures, options and of course cross border currencies. This data dump is the fuel feeding automation technology, quant’s research and strategy modeling tools. That technology plays a critical role in the trade lifecycle. Its fast paced evolution goes hand-in-hand with innovations in trading.
Data accuracy is vital to determining outcomes; asset prices cannot be inaccurate or missing. It means dealing with the vagaries of multiple data sources, mapping ticker symbols across a global universe, tying indices to their constituents, tick-level granularity, ingesting cancellations and corrections, inserting corporation action price and symbol changes and detecting gaps in history. Any and all of these factors are vital to the science of quantitative trade modeling. With over five billion options contracts traded in 2014, the reliability of the resulting analytics such as implied volatility, delta and gamma for option strategies depend on underlying data accuracy and reliability. Big Data is about linking disparate data sets under some common thread to tease out intelligible answers to drive the creation of smarter trading models.
Tools of the trade for the Trade Lifecycle
- Comprehensive tools for data analysis and research
- Large library of analytical functions
- Integrated with R language and MATLAB
- Asset class neutral across history and live markets
- Perform in-depth alpha discovery across market microstructures and asset classes
- Rapidly design, test and deploy algorithmic strategies
- Same tools and services for research, algos and trade cost analysis
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