TradeTech Europe 2022 was an excellent opportunity to gain insight into the challenges facing professionals involved in the full trading cycle and discuss the biggest challenges in the industry and the solutions proposed to tackle these.
With electronic trading coming to rely more upon the use of Data Science, many organisations are now incorporating AI & data visualisation into their trading lifecycle. Over 50% of attendees noted that they are developing in-house capability for this, specifically with AI becoming key component in the process of reducing operational risk, expanding trade cost analysis, and in the outcome of trading decisions.
These changes come with their own challenges, as in order to produce accurate results the AI will require training with a large volume of historic data. This will often lead to differing data types being sourced, which will need to go through a normalization process to allow for uniformity for the data to be uploaded into the application.
Whether handled in-house or by an external party, this is a time consuming and intricate process that requires specialist knowledge. This has led more and more for the need for teams familiar with data science in order to not only interpret the results but ensure automation can be scaled in a reliable manner.
Consequently, there is a need for investment in upskilling traders with more advanced programming and data analysis abilities. Along with this, the quantity of data required to be stored and processed requires a scalable network infrastructure in order to allow for managing of market data in real time. Cloud technology presents a solution to many of these challenges. By entrusting your server storage to a third party, your organization will be able to reduce the cost of hosting these on site, while also removing the risk that comes in the form of ensuring that adequate cyber security is in place to meet commercial regulations.
Taking advantage of colocation services will allow for the deployment of servers within data centers enabling a secure fast connection to key liquidity venues. Doing so will allow for resources to be focused on areas that will improve trading performance. Moreover, the speed available through gaining an ultra-low latency connection for your network will ensure you are able maintain a competitive advantage and allow the AI and automation applications created for your trading activities to be used to its full potential.