The trifecta of technology innovation, winner-take-all competition and more intense regulatory reporting continued to drive the evolution of financial markets in 2018. It is also top of mind for our blog readers, as evidenced by our most popular trading blogs of the year.
Financial markets innovation using AI was all the rage in 2018, with many firms working to replace rules-based strategy algorithms with machine learning technology or to provide predictive analysis to fuel intraday decision-making. Our readers wanted a sneak-peek into how Corvil’s data scientists build machine learning models for anomaly detection and behavioral analysis that are capable of handling the torrent of electronic trading activity visible on the network. Data quality is king when applying AI. From our perspective, there is no substitute for the precision data delivered by real-time analysis of trading operations and transactions.
Our customers’ efforts to drive competitive advantage became more diverse and sophisticated. As a result, a wider variety of stakeholders wanted granular information and analysis to improve routing and strategy execution, provide more transparency to clients, and maximize value received from market data spend. This drove several build vs buy discussions, as many firms wanted to avoid the opportunity costs associated with building and maintaining infrastructure to obtain, organize and make those insights broadly available to various stakeholders.
Another hot topic was a more strategic and proactive approach to compliance as the number, and breadth, of regulations continued to grow. The transparency afforded by real-time analytics supports a wide range of compliance efforts, from identifying cybersecurity risks for GDPR’s enhanced breach notification measures, to demonstrating UTC traceability, to simplifying long-term order life- cycle reconstruction.
From our perspective, the underlying challenge firms face in all three areas is making meaningful and efficient use of their data to manage and optimize the performance of their trading business. The blogs in our recently published E-Book represent a snapshot of how we took on these challenges in 2018 with our customers. Be sure to stay connected with us as we innovate and evolve to meet the new challenges that arise in 2019.